Qardhan Hasana Office – Mumbai
Usury and interest, in all its forms, has been forbidden in Islam. In one of the verses of the Qur`an it states,
Allah has permitted trade for you and has forbidden usury.
Thus comes the role of qardhan hasana – the interest-free or 'good loan'. Qardhan hasanah is a concept that flies in the face of everything that modern economics has come to be. The late Syedna BurhanuddinRA accurately compared modern interest based capital financing as being equivalent to 'blood cancer' wherein the blood – or capital – is seen to be growing but when one looks closer the growth is malignant and is actually destroying the healthy blood - or base capital.
Modern financing is seen as a profit making enterprise in itself; those with excess funds supply finance and in return charge a percentage that becomes their profit. The financier shares in none of the loss of the venture he is financing and in fact guarantees himself a reward regardless of the outcome of that venture. In Islam however and, indeed as is true for all the Abrahamic religions, the lending of money is not intended to be a profit making pursuit but a philanthropic one.
The act of giving Qardhan hasanah and its reward are described as being greater than the giving of charity. At first this seems incompatible since charity does not require repayment whilst a loan does. However the greater reward stems from the fact that whilst the giving of charity is a one off that satisfies an immediate need, the giving of qardhan hasana leads to the receiver to the prospect of becoming self-sufficient with no need to resort to charity.
It is stated in the Qur`an:
ان المصدقين والمصدقات واقرضوا الله قرضا حسنا يضاعف لهم ولهم اجر كبير
'The men and the women who give alms and lend Allah t`aala qardhan hasana will be blessed manifold and will receive a great reward.
he Burhani Qardan Hasana Scheme
The Burhani Qardan Hasana Scheme is an initiative of the late Dr Syedna Mohammed Burhanuddin. The funds are available to all community members wherever they may reside in the world.
In India and Europe the scheme is administered by the Saifee Foundation and The Saifee Foundation of Europe respectively. The Saifee Foundation was set up in 1959 by Dr Burhanuddin's predecessor, Dr Syedna Taher Saifuddin, in Mumbai. Its European arm was established in 1964 in London, and then came The Saifee Foundation Trust in Kenya.
In North America The Burhani Qardan Hasana Scheme is administered by the 'Burhani Qardhan Hasana Corporation (America)' and likewise the scheme has numerous local arms in other places around the world.
The BQHS headquarters is part of the Dawat-e-Hadiyah HQ at Fort, Mumbai. It caters to loan applicants from all over India either directly or through smaller local schemes around the country.
At any given time virtually all of the money in the corpus of BQHS is lent out. As the scheme's Mumbai Executive Director, Mr Aliasghar bhaisaheb Shakir relates; the late Syedna Dr Mohammed Burhanuddin once asked a director how much of the money was loaned out and the reply was given that almost all but about Rs5 crores or so was in the bank.
To this Syedna remarked that in that case they should give it back to him – indicating that there should be no money simply lying in the bank and not being out on loan helping someone.
BQHS gives loans for all kinds of reasons from the purchase of personal effects to expansion of businesses and manufacturing. To date the largest single loan has been one given as a short term bridging loan to secure a tender with the Indian Navy.