Qardhul Hasan is an important tool of financial needs and has strong emphasis in Islam. At the  present a significant number of Qardhul Hasan institutions are  paying facility mainly targeting the consumer needs.

On the other hand the microfinance activity in the world has considerable attention in the world .Microfinance credits are paied not only for consumption needs but also for financing the production of goods and services.

This article compares microfinancing with Qardhul Hasan funding  and concludes that Qardhul Hasan funding can avoid the negative aspects of microfinance institutionsand by  using its positive points expand quality of  its services.

Qardhul Hasan can be an instrument for financing and growth Production and employment and reduce closures that happens in Conventional Banking

because of dependence to interst -based credits.