A newly established Islamic bank would like to launch a credit card product based on Qard Hasan (an interest-free loan)‎

Fatawa Question

A newly established Islamic bank would like to launch a credit card product based on Qard Hasan (an interest-free loan). The bank is proposing to charge a fixed monthly fee for different categories of credit cards which shall be dependent on the types of services connected with the card. The bank also wants to introduce a reward scheme for those customers who will settle the outstanding amount of the Qard Hasan resulting from usage of the card within a certain defined date of the month. The reward shall be to refund the monthly fee to such cardholders. The reward shall not apply to the cardholders who would like to carry over the outstanding balance in their respective card account. The bank’s management has requested its Shariah board to approve launching the card and the reward scheme.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2013-07-10

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-784611

• APA
• MLA
• AMA