Qard Hasan as an İslamic financial instrument and a model proposal for İslamic banks

The aim of this thesis is to introduce Qard Hasan which is one of the Islamic finance methods and to propose a model that is desired to be implemented in İslamic banks in Turkey. Qard Hasan is defined as the interest-free loan is a benevolent economic behaviour in Islam for the sake of Allah. Despite this importance, the method has not been applied institutionally except for limited examples. With the proposed Qard Hasan model, it is aimed to partially solve the liquidity problems of individuals and institutions in Muslim societies and to systematize the Qard Hasan method recommended in Islam. In this study, a modern form of Qard Hasan designed for Islamic banks is explained. In order to test the model, focus group interviews were conducted with 3 different groups. The focus groups were selected from individuals who are in contact with Islamic banks, including academics, Islamic bank staff and businessmen. According to the results of the research, it is concluded that the model is a workable model that will fill a certain gap in the financial system, it will be supported by the society and most importantly it will contribute to decreasing the effectiveness of interest.