Ever wondered what Qard is all about in Islamic finance? It's not as complicated as it sounds. In simple terms, Qard refers to an interest-free loan based on the principles of Shariah. Let's explore this concept and see how it shapes Islamic banking.

No Interest, Just Help

Qard is based on the principle of Ihsan (beneficence). Basically, Qard refers to a contract of lending money by a lender to a borrower where the latter is bound to repay an equivalent replacement amount to the lender. In Islamic banking, the Qard has no sneaky interest attached, unlike regular loans from conventional banks.

Qard in Islamic Deposit

Qard isn't some abstract concept; it’s widely applied in Islamic deposit products, such as Current and savings accounts. Once you put your money into an Islamic deposit savings or current account, you are a lender lending your money to the bank. So, the bank is now a borrower.

Don’t Worry, We Guarantee Your Capital

In the Qard contract, the Bank (in this case, we) is responsible for paying back only what we borrowed, i.e., your deposit amount. That means no excess or contractual benefit will be payable on top of your deposit amount. We are serious about keeping things fair and square.

Ethical Borrowing and Lending

Qard promotes ethical and responsible borrowing and lending. It's all about being fair and compassionate in financial dealings. It’s free from interest and no hidden fees.

Accessible to Everyone 

Good news! Qard-based savings accounts can be opened by everyone, regardless of their religion, gender, race, or ethnicity. This inclusive approach ensures that individuals from all backgrounds can benefit from the advantages of an Islamic banking system.

So, a deposit account based on a Qard contract is simply about being good, honest, and helping each other out. That's the way to go in Islamic finance.