About the Qard Hasan Foundation Interest-Free Loan Program

Qard Hasan means “kind loan” or “goodly loan” in Arabic. The functional translation is interest free loan. The goal of the Qard Hasan Foundation is to provide interest free loans for post-secondary education to Muslim students to help them achieve their goals and become productive members of society. The money for the loans and our operating expenses will come from ongoing contributions (donations) to the Foundation by the local community and others, and as the loans are repaid those funds will also help fund additional loans. Our hope is that the students who receive loans will go on become contributors to the Foundation, helping to fund loans to other students.

Application Requirements:
A Loan Applicant must :

  1. Be a member of the Muslim faith
  2. Enrolled in, or a graduate of, an accredited United States post-secondary educational institution
  3. Be active in their local community
  4. Be a member of the Greater Austin Texas Muslim Community
  5. Have a 3.0 (on 4.0 scale) grade point average, for high school or college as appropriate
  6. Be a citizen of the United States or a legal resident (green card holder)
  7.  Have a co–signer for their loan(s).

Who is eligible to receive loans?

  • Students just beginning their college career
  • Students who are already enrolled in college

How will loan recipients be selected?

  • Applicants will complete a questionnaire and an application, as well as write an essay response to a provided prompt.
  • Applications will be reviewed by a selection committee comprised of members of the Board of Directors.
  • Loan recipients will be selected based on multiple factors that may include but are not limited to: religion, merit, need, community service, and involvement in their local community.
  • Following year loans may be provided based upon available funds, grade point average, and continued enrollment, and other factors, by completing a shortened application, and at the discretion of the Board of Directors.

How will Qard Hasan Loans be structured?

  1. Loans are currently targeted for $5,000 per year, $2,500 per semester.
  2. All loans require at least one co-signer and up to two co-signers as determined by the board.
  3. Qard Hasan Foundation will pay the borrowed amounts directly to the education institution or other qualified recipient on behalf of the loan recipient, as two $2,500 payments – one each for the fall and spring semesters.
  4. Loans are to pay for the legitimate expenses  related to a full time student in a post-secondary education institution. Examples of qualified expenses would be: tuition, mandatory fees, books, room, and board.
  5. The interest rate on all loans is zero percent (0.00%)
  6. There are no application fees or other charges associated with applying for or receiving a Qard Hasan Foundation loan.
  7. Loan repayments:
    • Minimum of $100.00 per month per loan while in school
    • There are two loan repayment options for each loan:
      1. Type 1: $100.00 (one hundred dollars) per month payment per loan:
        • This payment level will take 50 months to pay back your student loan.
        • You could potentially be making 4 (four) loan payments per month at the same time, for a total monthly payment of $400.00 beginning October 1st of your senior year.
      2. Type 2: $200.00 (two hundred dollars) per month payment per loan:

        • This payment level will take 25 months to pay back your student loan.
        • You could potentially be making no more than 2 (two) loan payments per month after your freshman year, for a total of $400.00 per month
        • This option may require extra payments during the summer months to keep the maximum payment during the fall and spring semesters at $400.00 per month.

        Qard Hasan will work with each student to assist in their picking the correct payment plan for them.
        Each loan is a separate legal contract and activity and as such, a different loan repayment schedule may be chosen for each loan.

      3. IMPORTANT:
        • For college students, loan repayments begin in September for loans executed in August.