Gharzul-hasaneh financing and institutions

The article discusses the characteristics of Gharzul-hasaneh loans. The allocation of incomes into consumption and savings by consumers is analyzed in the first section of the article. Alternative methods of saving like gharzul-hasaneh savings, charity donations and long term investments are then discussed. The functioning and performance of Gharzul-Hasaneh Funds (GHF) in the urban and rural sectors of Iran is explored in the third section. The article then concludes with the proposal that in the Islamic financial markets, Gharzul-hasaneh financing and Gharzul-hasaneh organizations can have a possible and unique role.