The Qarz-e-Hasan Scheme (QHS) was the founding initiative of FSC, launched in November 1994 with a dedicated corpus of ₹40 lakhs. It was a compassionate, interest-free loan model supporting low-income individuals and families in meeting critical needs without exploitation or burden.
Purpose and Significance
- Offer ethical, interest-free financial support to underserved communities
- Enable health care, education, family support, housing, and self-employment
- Promote financial dignity, mutual aid, and community upliftment
- Advance FSC’s mission of economic justice and inclusive growth
Cumulative Impact
- Over 650 beneficiaries received interest-free support since 1994
- Scheme turnover nearly doubled the initial ₹40 lakh corpus
- Support extended to individuals, students, families, and institutions
Annual Snapshot (2002–2003)
| Category |
No. of Loans |
Amount Disbursed |
Amount Recovered |
| Individuals |
25 |
₹3,03,940 |
₹5,77,058 |
| Institutions |
5 |
₹4,52,021 |
– |
| Total |
30 |
₹7,55,961 |
₹5,77,058 |
Loan recovery continued post-2003, with efforts including recovery notices to approx. 350 defaulters and recovery of over ₹80,000 in a later cycle.
Conclusion & Legacy
The scheme was eventually retired due to evolving financial systems and recovery challenges. Yet, it remains a cornerstone of FSC’s welfare legacy—demonstrating that ethical, non-exploitative finance can uplift lives with dignity.
Values That Continue
- Subsidized health care via Hayat Hospital
- Educational aid and scholarships
- Emergency medical and family support services
- Community upliftment with empathy and justice
“Financial empowerment is not about loans. It’s about trust, dignity, and opportunity. Qarz-e-Hasan stood for this belief—and that belief continues through every charitable act FSC undertakes.”
Alignment with National Priorities
- Jan Dhan Yojana: Financial inclusion for all
- Atmanirbhar Bharat: Self-reliance through local solutions
- National Livelihood Mission: Micro-enterprise development
- Social Welfare Schemes: Targeting EWS and backward groups
Though QHS was ahead of its time, its spirit resonates with today’s national vision for empowerment with dignity.
