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Quard means loan without
interest and Hasana means beautiful. Quard-e-Hasana
implies beautiful loan on good faith or beneficial
loan. Islamic Banks do not recover any charge, even
service, from Quard-e-Hasana account. Loanee has to
repay the principal amount. This loan facility is
extended only to deserving cases on compassionate
grounds and special welfare consideration. The
principal amount is refundable within a reasonable
time. Prime Bank grant this loan not only for
consumption purpose but also for owning factor(s) of
production. The ultimate objects of both the
consumption and production Quard-e-Hasana are to
enable the loanees to support economic problems.
In Islamic Banking
Branches of Prime Bank an investment is created
against pledge of Term Deposit. Generally 80% of the
Term Deposit is allowed to the holder for Halal
activities without any profit. Only a minimum service
charge per deal is taken. Thus It is also called Quard
against Term Deposit Receipt. |
