Q: When does Qard e Hasana need to be repaid?
Will reaching a nisab level greater than the qard e hasana amount make it obligatory to return the money?
What about a situation, where it is agreed between the two parties that if the recipient decides not to return the money to the donor, he does not have to. Is there anything wrong in having such a condition and will that still be classed as qarz e hassana?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: A loan contract requires the borrower to return the loan to the lender. If the borrower is not under any obligation to return the loan to the lender, then this is not a loan. Such cannot also be considered a liability for the purposes of zakāh and cannot be deducted from one’s zakātable amount.
If the donor and recipient agree that if the latter decides not to return the money to the former, he does not have to, then this is a gift and not a loan.
Reaching the nisab level greater than the loan amount will not make it obligatory to return the money. The money is returnable upon the demand of the lender.
And Allah knows best.
Mufti Mohammed Zubair Butt
Chair Al-Qalam Sharia Scholars Panel