A Lifeline for the Underserved
In the bustling city of Bengaluru, 58-year-old Abdul Tayeb Saifee faced a daunting challenge. As an industrial adhesive manufacturer, he had weathered a major economic setback, leaving him struggling to support his family. With limited financial assistance from friends and family, Saifee turned to an unlikely savior – the Qardan Hasana institution.
Qardan Hasana, literally translated as “the good loan,” is a 45-year-old Dawoodi Bohra community initiative that provides interest-free loans to its members. This unique institution, rooted in the Islamic principle of refraining from interest-bearing transactions, has been a lifeline for thousands of individuals and businesses across South Asia and beyond.
“The timely loan was like an elixir, a single drop of water that revived me and gave me a new lease on life,” Saifee recounts. The interest-free nature of the loan allowed him to focus on rebuilding his business without the burden of compounding debt. Saifee’s sense of responsibility was further strengthened by his commitment to repaying the loan installments on time, motivating him to push beyond his comfort zone and work harder.
Fuelling Entrepreneurship and Growth
Qardan Hasana’s impact extends far beyond individual financial support. The institution has played a pivotal role in fuelling entrepreneurship and enabling business growth within the Dawoodi Bohra community.
Take the case of Ahmed Calcuttawala, a 94-year-old marine supplies business owner in Kolkata. Calcuttawala’s capital-intensive industry requires regular infusions of cash, which he has consistently sourced from the local Qardan Hasana office. “This proved highly beneficial for my working capital, especially during and post-pandemic business recovery,” he shares.
Calcuttawala’s story is not unique. Qardan Hasana has provided aspiring entrepreneurs with the financial wings they need to soar. “With the support of money I received, I was able to turn my dream into reality,” says Zahra Aliasgar, a 32-year-old teacher from Coimbatore who transitioned from working in a private school to starting her own kindergarten. “The institution’s assistance gave me the confidence and resources to pursue my ambitions without the burden of interest.”
The Working Mechanism
The Qardan Hasana model is built on a foundation of community support and leadership. The primary contribution to any Qardan corpus is provided by the Syedna, the spiritual and temporal head of the Dawoodi Bohra community. Currently, this responsibility lies with Syedna Mufaddal Saifuddin, who continues to infuse new funds, especially on important anniversaries or celebrations.
Alongside the Syedna’s contributions, local community members also contribute to the Qardan corpus, with no limitations on the amount. This collective effort ensures that the Qardan Hasana organizations are well-equipped to cater to the socio-economic needs of any community member.
Breaking the Cycle of Interest-Bearing Loans
The importance of Qardan Hasana cannot be overstated in a world where interest-bearing loans have become a common burden for individuals and businesses alike. Every day, we hear stories of unpayable debts, bankruptcies, and lives weighed down by the constant pressure of servicing interest payments on housing, education, or commercial loans.
The economic impact of the COVID-19 pandemic and the ongoing challenges in the global banking system have exacerbated the financial struggles of millions. However, studies have shown the vital role that cash reserves play in times of uncertainty, as well as for fostering future growth.
Qardan Hasana’s interest-free model offers a sustainable alternative, breaking the cycle of debt and providing a lifeline for those in need. By empowering individuals and businesses to thrive without the burden of interest, the institution has become a beacon of hope, uplifting lives and fuelling entrepreneurial dreams.
Honoring the Legacy of Syedna Mohammed Burhanuddin
The Qardan Hasana institution was established in 1979 by the late 52nd leader of the Dawoodi Bohra community, Syedna Mohammed Burhanuddin. As Abdul Tayeb Saifee expresses his gratitude, “He gave us this institution that has been a true blessing, reviving and supporting countless lives like mine.”
Syedna Burhanuddin’s vision and commitment to the wellbeing of his community continue to inspire the current Syedna, Mufaddal Saifuddin, and his followers to uphold and expand the Qardan Hasana initiative. Through their unwavering dedication and the collective contributions of the community, this institution has become a shining example of how faith-based principles can be translated into tangible social impact.
Expanding Horizons, Empowering Communities
As the Qardan Hasana institution celebrates its 45th anniversary, its reach and impact continue to grow. Hundreds of branches have been established across South Asia, where the majority of the Dawoodi Bohra community resides, as well as in other parts of the world.
Beyond its role in providing financial assistance, the institution has become a hub for community engagement and advocacy. It has empowered individuals to pursue their dreams, supported the growth of small and medium enterprises, and fostered a sense of collective responsibility within the Dawoodi Bohra community.
The success of Qardan Hasana serves as an inspiration, not just for the Dawoodi Bohra community, but for people of all faiths and backgrounds who seek innovative solutions to economic and social challenges. It is a testament to the power of community-driven initiatives, rooted in the principles of compassion, self-reliance, and shared prosperity.
Conclusion
The Qardan Hasana institution stands as a shining example of the transformative impact that can be achieved when a community comes together to uplift its members. Through its unwavering commitment to providing interest-free loans, the Dawoodi Bohra community has created a sustainable model that has revived lives, fuelled businesses, and inspired generations.
As the world grapples with the lasting effects of economic upheaval, the Qardan Hasana institution offers a beacon of hope, demonstrating that financial empowerment can be achieved through collective action and a steadfast adherence to ethical principles. By sharing this story, Joint Action for Water hopes to inspire others to explore innovative community-driven solutions that address the pressing needs of the underserved and unlock their full potential.
