The word “Quard” is Arabic word which means loan or credit on advance. The literal meaning of Quard is giving “Fungible goods” for use without any extra value returining those goods.

 

The word “Quard” is Arabic word which means loan or credit on advance. The literal meaning of Quard is giving “Fungible goods” for use without any extra value returning those goods. It must follow the principle of equal for equal return with homogenious goods. Fungible goods may be rice, oil, salt, money etc. In banking sector, money is used as quard. Quard is Halal by Islam for not to pay any extra or interest in return.