Jam'iyyat Mu'assasat al-Qard al-Hasan

Jamʿiyyat Muʾassasat al-Qarḍ al-Ḥasan (The Al-Qarḍ Al-Hasan Association) is a financial-social and non-profit institution affiliated with Hezbollah in Lebanon, established in 1982. This institution commenced its operations in 1983 to offer interest-free loans in accordance with Islamic principles. With over 30 branches in various regions of Lebanon, it offers services such as microloans, loans against gold collateral, and support for productive and family projects. Its financial resources are secured through public donations, gold deposits, and the participation of benefactors.

The Al-Qarḍ Al-Hasan institution has been sanctioned by the United States and has also been targeted by Israeli military attacks.

"Al-Qarḍ Al-Hasan Institution": A Financial-Social Entity in Lebanon

The Al-Qarḍ Al-Hasan institution is one of the financial-social entities affiliated with Hezbollah in Lebanon, established to provide services to the needy. It is said that the main duty of this institution is to revive the tradition of Qard al-Hasan (benevolent loan) and provide interest-free (non-usurious) loans in accordance with Islamic principles to Lebanese citizens, without discrimination regarding religion or politics.

Al-Qard Al-Hasan has numerous branches in the Shi'a regions of Lebanon, reaching 34 branches by 2023. According to news reports, following the Lebanese financial crisis starting in 2019, this institution took on a broader role and was welcomed by people from various spectrums. Hezbollah has also supported it and encouraged people to deposit in it. Israel considers this institution one of Hezbollah's significant financial sources.

History and Establishment

The Al-Qard Al-Hasan financial institution was established in 1982, following the Israeli invasion of Lebanon, with the aim of providing non-usurious loans to the needy. This institution officially began its activities in 1983 and received its official license from the Lebanese Ministry of Interior in 1987. According to the founders of this entity, the financial resources of Al-Qard Al-Hasan are not based on profit-oriented activities but are secured through public donations, deposits from benefactors, and people's gold deposits.

One of the branches of Al-Qard Al-Hasan Institution in Beirut

Services and Activities

According to reports, in the years 2020 and 2021, this institution granted over 212,000 loans worth 553 million dollars. The services of this institution include:

• Providing various interest-free loans for matters such as Marriage, housing, medical treatment, and starting small businesses.
• Granting loans against gold collateral.
• Supporting micro and agricultural projects.
• Activities in educational and medical fields.

Challenges and International Sanctions

The Al-Qard Al-Hasan institution has faced numerous challenges from the United States and Israel. The US Treasury Department considers this institution a cover for Hezbollah's financial activities and sanctioned it in 2007, 2016, and 2021. In 2021, the US Treasury announced sanctions against six employees of the "Al-Qard Al-Hasan Institution" for using personal accounts in Lebanese banks to transfer over 500 million dollars over a decade.

One of the destroyed branches of Al-Qard Al-Hasan in Lebanon following an Israeli airstrike

In December 2020, this institution was targeted by a cyberattack that led to the leak of its clients' information. Israel, aiming to weaken Hezbollah's financial structure and create a rift among its supporters, has targeted the branches of this institution with airstrikes; including bombing six of its branches in the 2006 war, and in October 2024, during widespread attacks, destroying over 15 of its branches in various regions of Lebanon, including the southern suburbs of Beirut.

Some opponents of Hezbollah in Lebanon also criticize the lack of banking oversight on the activities of this institution.

Stances and Reactions

Sayyid Hassan Nasrallah, the then-leader of Hezbollah, following the data leak in 2020, asked people to resist pressures by financially supporting this institution. Pointing to the financial accusations by the US and Israel against this institution, Hezbollah claimed that none of these allegations have been substantiated so far and are part of political pressures to undermine the service-oriented image of this movement. According to Hezbollah, these accusations cause the most harm to low-income strata who depend on the provided services.

The Al-Qard Al-Hasan institution has also consistently denied any accusations regarding military or illegal financial activities, emphasizing that its activity is purely charitable and social, serving all Lebanese without discrimination.