<i>Maqasid</i> -based eligibility index for <i>Qardhul Hassan</i> financing in Malaysia

Purpose This study aims to investigate a Maqasid-based eligibility index (MABE-i) in identifying users for Qardhul Hassan financing in the Malaysian context. Design/methodology/approach MABE-i was tested to examine 421 potential users’ eligibility covering Kuala Lumpur, Selangor, Negeri Sembilan and Sabah by using SPSS 27. Findings Through MABE-i, three groups of prospective customers were generated, including high group acceptance, medium group acceptance and low group acceptance. The details are provided in this study. Research limitations/implications The generalisation of the results generated was limited to the setting and variables analysed. Practical implications The results offer a directive for Islamic social banks to offer Qardhul Hassan according to the applicant’s eligibility and criteria. Originality/value This study introduced MABE-i as a new taxonomy to evaluate the eligibility of potential users for Qardhul Hassan financing.