Islamic financial institution (IFI) has two orientations that are commercial and social orientation. Through a system which has been implemented into practices IFI has successfully delivering products or contracts that based on Islamic principles. As for the loan contract form in IFI, there are two types of loans with profit oriented and non-profit oriented. A non-profit product is Qard or usually called as Qard Al-Hasan or benevolent loans. This study aims to analyze the use of Qard al-Hasan (benevolent loans) as a loan product that is applied in Islamic banks and Baitul Mal Wa Tamwil (BMT) in Indonesia. The case studies in BMT Amanah as the organizer of Qard al-hasan product located in Banyumas, Central Java. This study uses a qualitative method with phenomenology approach and uses constructive theory. The data that is used is a primary data with is in-depth interviews through key informants from practitioners and academician of Islamic Economics. It also uses secondary data obtained from various sources and related literatures. The result shows that the use of loan products Qard al-hasan in Indonesia still has a number of shortcomings including education and socialization in practices. In line with the Islamic Financial Institute (IFI) and practices in BMT Amanah, it is highly needed an improvement in terms of quality of human resources and the initial purpose of the contract as a social charity distribution. The importance of well-conducted practice in accordance with the sharia principles on delivering the benevolent loan in order not becoming a debt contract should be based on social oriented and not becoming a loan which has an element of riba' or have a profit orientation in the application of Qard Al-Hasan.