The Qur’an encourages Muslims to provide qard hassan, benevolent loans, to “those who need them”:
“Who is he that will give Allah Qard Hasan? For Allah will increase it manifold to his credit.” (Qur’an 57:11)
“If you give Allah Qard Hasan … he will grant you forgiveness.” (Qur’an 64:17)
“Establish regular prayer and give regular charity and give Allah Qard Hasan.” (Qur’an 73:20).
Islam allows a cash loan as a form of social service among the rich to help the poor and those needing financial assistance. Qard hasan can be seen as something between giving charity and giving a loan.