In contrast to conventional approach to social finance Islamic economic system is an integrated approach towards improving overall well-being of the society though this does not disallow individual’s self-interest within the ambit of morals. In this background our paper reviews perspective of Islamic finance on financial inclusion and discusses the significance of one of its key redistributive instruments, i.e., Qard-al-Hasan (QH: benevolent loans) in reinforcing the social unity and cooperation. Our paper presents the Case Study of an Islamic microfinance organization, Akhuwat, (literary meaning solidarity) to illustrate how significant QH can be on the landscape of social and sustainable finance in developing countries. The paper in its final section suggests policy recommendations for capitalizing on the immense potential of QH towards the objective of social justice especially in Muslim dominated countries.