Loan-Quard/Quarde Hasanah, Riba based Loan or Quard-ur-Riba, Rent and Commission
Loan-Quard/Quarde Hasanah, Riba based Loan or Quard-ur-Riba
, Rent and CommissionLoan-Quard/Quarde Hasanah Loan in Arabic is termed as Quard. Loan or Quard may be defined as follows: To give any person a Fungible goods for using the same for his benefit on condition that he shall return similar goods in same quantity/amount within a fixed period or when possible for him. An analysis of this definition gives the following essential elements of loan:
i) The goods must be Fungible one;
ii) It must be given to someone for his use and benefit;
iii) There must be a condition to return similar goods in same quantity/amount;
iv) There must have a period of maturity which may be fixed or may also be kept open;
v) The lender does not bear any risk of the loan he lent;
vi) Nothing additional (of the same goods or any other goods, services or benefit) over and above the principal should be imposed, charged or even expected against loan. Any transaction having fulfilled these conditions, shall be termed a loan or Quard. This actually is what we call Quard-e-Hasansh.
Riba based Loan or Quard-ur-Riba When any loan/Quard is offered or received on condition that certain additional amount or any other excess or benefit will be charged or be paid (over and above the principal) the loan or quard is turned into a Loan on Riba or Quard-ur-Riba, the excess being the Riba or interest. Thus, the difference between Quard-e-Hasanah and Quard-ur-riba is that, in Quard-e-Hasanah, there is no excess but in Quard-ur-Riba there is excess which is Riba or interest. This excess is paid by the borrower to the lender for which borrower loses to that extents while the lender becomes gainer to the same extent. It is, thus, taking the excess paying nothing in return. This is great injustice. That is why it is Haram.
Rent In Arabic it is termed as Ajr' which means consideration, exchange value, reward, wages, etc. It is the price of service of non-fungible goods. The term Ijarah' has been derived from Ajr'. Ijarah is one kind of Bai/Buying and selling. It is a mechanism by which the service of a non-fungible goods is sold in exchange of Rent (Ajr) keeping the goods and its ownership unsold. Thus it is an exchange of counter value, one side being the service and the other side the Rent'. Therefore, it is Halal. Commission
Definition (In general): The fee charged by or paid to a broker, agent, or auto sales representative for negotiating a real estate, car sale, or loan transaction.
Definition (In the view point of Banking): A fee paid to the Bank by a client for transacting a piece of business like negotiating sale or performing a service.
A commission is generally a percentage of the sales price/contract basis/fixed basis. In view point of Shariah: A fee charged by a broker or agent for his/her service in facilitating a transaction by rendering services. The payment of commission as remuneration for services rendered or halal products sold is a common way to reward sales people. More.....