Qarz-e-Hassana

The concept of Qarz-e-Hassan (کرض-ا-حسّنا ) is not new in Islam. Karz-e-Hassan is that loan which given on the basis of humanity (نیکی ) and good deed (حسن سولوک ). To put it simply, it is Interest free Loan provided to the Needy person. The Eligibility of the needy person is verified, checked by Inquiry officer of The Tooba Foundation and they ensure that the person is really needy, and they won’t mis use the concept of Qarz-e-Hassana and then Qarz-e-Hassana(Qarz-e-Hassana) is provided to the person.

Before providing qarz-e-hassana, the terms and conditions are always put in Black and white. The amount of Qarz-e-Hassana is documented, along with Person’s name, address, his NIC, his utility bill belonging to his permanent address. The time limit is also decided on which he will be making the payments.

If the borrowers dies during the time he has taken the loan, the remaining loan, since its a loan, would have to be recovered from witnesses.

These types of loans would then be presented to The Tooba Foundation Management, who then decide to write off these types of loans.

However, the recovery team of The Tooba Foundation would try all the resources and witnesses to recover the loan.

EXAMPLE:

Aslam wanted to small business of making card boards. For that he needed a loan of RS. 10,000. He goes to Tooba Foundation, goes through the process of scrutinization, and decides that he will be taking RS. 10,000, and returning it in 10 months providing RS. 1000 each month. Months and days passes and he is now at 5th month. He has given back a total of RS. 5000 as decided without any interest off course.