What is Qarz-E-Hasna?

Qarz-e-Hasna is essentially an interest-free loan. In Qarz-e-Hasna, the lender does not charge any interest on the principal amount borrowed. The primary motive behind offering a Qarz-e-Hasna loan is to help individuals in financial distress. It reflects a spirit of generosity and charity.

While the loan is interest-free, there may be terms and conditions associated with Qarz-e-Hasna loans, such as a repayment schedule, the purpose of the loan, and the borrower's ability to repay. However, these terms are typically more lenient than those of commercial loans.

Borrowers are encouraged to repay the borrowed amount once their financial situation improves. This repayment can be used to help others in need, continuing the cycle of charitable giving.

How Qarz-e-Hasna is different from Micro Financing?

Qarz-e-Hasna and microfinancing are both financial assistance mechanisms, but they differ significantly in terms of their principles, objectives, and operation:


Micro Finance


Qarz-e-Hasna is an interest-free loan provided typically within a community or
charitable context. The lender does not charge any interest on the borrowed amount.


Microfinancing involves providing small loans to individuals or small businesses, typically in underserved or low-income communities.  These loans come with interest rates and are provided by microfinance institutions (MFIs).

Charitable and Benevolent

It is primarily based on the principles of charity and benevolence.
The focus is on helping those in need without seeking financial gain in return.

Financial Inclusion

Microfinancing aims to promote financial inclusion by providing access to credit and financial services to those who are excluded from traditional banking systems.

No Profit Motive

The lenders expect the borrowed amount to be returned but without any
interest. The primary motivation is to assist the borrower rather than earn a financial return.


Microfinance institutions are usually for-profit organizations. They charge interest on loans to cover operational costs and generate income.

HEWT‘s Qarz-e-Hasna for Small Business Establishment

HEWT's Qarz-e-Hasna program is dedicated to supporting the establishment of small  businesses for individuals, with an emphasis on supporting women while also extending this opportunity to men. All of whom must meet HEWT's criteria for deserving applicants who meet specific criteria as defined by the HEWT. The program is designed to empower financially disadvantaged individuals who have the potential to run small businesses and are committed to returning the borrowed amount through easy 12 monthly installments.

The key elements of this initiative include:

Financial Assistance for the Deserving

HEWT extends Qarz-e-Hasna loans to individuals who are financially at a very low level. This is to provide a helping hand to those who might not have access to conventional financial resources.

Entrepreneurial Potential

Applicants must demonstrate the ability and readiness to operate a small business successfully. This assessment ensures that the loan serves the purpose of enabling entrepreneurial endeavors.

Integrity and Repayment Commitment

HEWT places a high emphasis on the integrity of the applicants. Those selected are individuals who commit to returning the Qarz-e-Hasna amount in easy 12 monthly installments, reflecting their dedication to fulfilling their financial obligations.

Supporting Small Businesses

The loans granted under this program are earmarked explicitly for business-related purposes. Borrowers can utilize the funds for startup capital, purchasing inventory, equipment, or other business essentials.

Empowering the Disadvantaged

HEWT’s mission is to empower financially disadvantaged individuals by providing them with the resources they need to establish small businesses. This, in turn, contributes to economic self-sufficiency and community development.

Focused on Deserving Applicants

The selection process is rigorous and aimed at identifying individuals who genuinely meet HEWT’s criteria for deserving assistance. This ensures that the funds are directed to those who need it most.

12 Monthly Installments

The repayment schedule is designed to be manageable for the borrowers. They are expected to repay the loan amount in 12 monthly installments, allowing them to gradually return the borrowed funds.

Empowering Through Entrepreneurship

HEWT not only provides financial support but also offers guidance and support to loan recipients, including business training and mentorship, to enhance their chances of success in running a small business.

HEWT's Qarz-e-Hasna program is for small business establishment is centered on financially disadvantaged individuals who possess the capability to operate small businesses and have the integrity to fulfill their repayment commitments. This initiative aligns with HEWT's mission of fostering economic empowerment and self-reliance within deserving communities.