Consumption loan in Islam

Islamic idealism has some practical aspects. Islam has some rules with regard to consumption loans. Not only is a scheme of qard hasan in Muslim societies practicable, but it goes a long way toward mitigating the evils of riba (interest) in these societies. Islam's four principles on consumption loans are: genuineness (loans should not be taken out for artificial desires); contract (deals involving borrowing should be recorded and the borrower should be made to set the written terms); payment (dying in debt is discouraged); and help (loans are to bear no interest and the motive for making them should be aid, not profit). States may deal with consumption loans by: setting up networks of cooperatives with government patronage; using Islamic banks; and establishing a government Consumption Credit Fund. These methods may be used together or separately.