Islamic Finance Law from A-Z
Qabd
(lit. seizing) taking possession of the exchange commodity in an exchange transaction, such as the exchanger taking possession of the silver which he traded for his own gold. Its being immediate is a necessary condition for the validity of currency exchange.
Qard
Literally “to cut”. It is so called because the property is cut off – transferred to the borrower. Legally, Qard means to give anything having value in the ownership of the other by way of virtue so that the latter may avail himself of the same for his benefit with the condition that the same or similar amount of that thing will be paid back on demand or at the settled time. The repayment of loan is obligatory. Loans under Islamic law can be classified into Salaf and Qard, the former being a loan for a fixed time and the latter payable on demand. Qard is, in fact, a particular kind of Salaf (see Salaf).
Qard hassan
A virtuous loan. A loan with the stipulation to return the principal sum in the future without any increase; in Islamic law, all loans have to be virtuous, as seeking any benefit from loaning amounts to Riba.
Qimar
Games of chance – gambling. Technically, it is an arrangement in which possession of a property is contingent upon the happening of an uncertain event. By implication, this applies to a situation in which there is a loss for one party and a gain for the other without specifying which party will lose and which will gain.
Qirad
Qirad is a synonym for mudarabah – partnership in which a person or a group of people provides funds while another provides entrepreneurship for conducting the business.
Qirsh
A coin of inferior metals used in ancient Iraq for making payment.
Quran
The Book of Divine Revelation that was delivered to humankind by the Prophet Mohammed, peace be upon him.
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