Definition and Etymology
Qarẓ (قرض): This term from Arabic, translating directly as “cutting,” carries profound meaning in Islamic thought. It refers both to charitable acts done for God’s sake, promising divine reward, and to interest-free, ethical loans. Deriving its phonetic essence from “cutting,” it metaphorically implies the act of severing worldly attachments to offer something in the way of Allah.
Background and Cultural Context
In Islamic tradition, QARẒ signifies more than mere financial exchange. This term prominently appears in Sūrah al-Mā’ida (5:12): “Lend unto Allah a goodly loan. Verily, He will expunge your misdeeds and certainly admit you into Gardens under which rivers flow.” This encouragement to extend loans embodied as good deeds roots deeply in the ethos of charity, selflessness, and communal support.
Role in Islamic Finance:
- Good Deeds for Divine Reward: The primary connotation of giving qarẓ without expecting worldly returns but anticipating spiritual and ethical benefits, aligns the act with virtues esteemed in Islamic ethics.
- Interest-Free Loans (Qarẓ Hasan): As a cornerstone of Islamic finance, this form of loan (qarẓ ḥasan) emphasizes humanitarian assistance. Borrowers can repay as per their convenience without accumulating interest, fostering a non-exploitative financial environment.
Cultural Differences and Similarities
Cultural Similarities:
- Persian, Urdu, and Pushto Usage: Across diverse Islamic cultures, qarẓ retains its core ethical and legal dimensions encompassing charitable and interest-free aspects.
Cultural Differences:
- Interpretations and Applications: Though fundamentally similar, practical applications of qarẓ vary. For instance:
- In Persian and South Asian Contexts: qarẓ minimally bears semblance to loans with interest, resembling ribā (usury), legally prosecutable within Islamic jurisprudence.
- In Arab Cultures: emphasized as altruistic and community supportive without ulterior gains.
Synonyms and Antonyms
Synonyms:
- Qarẓ Ḥasan (قرض حسن): Goodly loan
- Ṣadaqah (صدقة): Charity
- Kafālah (كفالة): Sponsorship
Antonyms:
- Ribā (ربا): Usury/Interest
- Istighlāl (استغلال): Exploitation
Related Terms and Definitions
- Ribā: Prohibited interest or usury declared harām (forbidden) in Islam.
- Ṣadaqah: Voluntary charity given by Muslims for community welfare embodying faith and piety.
- Zakat: Obligatorily due alms as one of the Five Pillars of Islam, purifying wealth and aiding the needy.
Exciting Facts and Perspectives
- The Qur’an’s Moral Imperative: Extending qarẓ is acclaimed equivalent to lending to Allah, epitomizing unparalleled divine merit.
- Contemporary Islamic Finance: Modern principles proudly adopt qarẓ principles in promoting work ethics, financial inclusion, and combating usurious elements.
Quotations from Notable Writers:
“I have never been impressed by the grandeur of towering financial institutions as much as by a modest devotee sharing his last dinar, anticipating nothing but Allah’s favor in return.” - Hamid Dabashi
Suggested Literature and Sources for Further Study
- “Islamic Finance: Principles and Practice” by Hans Visser
- “The Ethics of Al-Qarẓ Al-Ḥasan: Mosque-Based Community Banking and Microfinance in Contemporary Muslim Populations” by Mahmoud Osman
- “Interest-Free Islamic Banking: Finance for the Developing Citizens” by Nahid Siddiqui and Leena Shilpa
Quiz Section
With eternal wisdom enlightening our paths and charity guiding our actions, we embark towards a harmonious world. Live by the principles of kind-heartedness as embedded in qarẓ, for every selfless act uplifts the essence of humanity.
Until next reflection, Haroon Siddiqui 2023-10-03
