Shariah Compliant Home Finance
Shariah compliant home finance, also known as Islamic home finance, adheres to Islamic law’s financial principles.
This form of financing is structured in a way that avoids the payment or receipt of interest, which is prohibited under Shariah law. Instead, financial institutions and borrowers engage in arrangements that mimic the trade of assets or joint investments.
Shariah compliant home finance, also known as Islamic home finance, follows Islamic principles such as the prohibition of interest (riba) and unethical investments.
Shariah compliant home finance operates on principles of profit and risk-sharing, where the bank and the borrower enter into a partnership to purchase the property together.
Eligibility criteria for Shariah home finance are similar to conventional home loans and typically include factors such as income, employment history, credit score, and the value of the property being purchased.
Documents required for Shariah home finance are similar to conventional home loans and may include proof of income, identification, employment details, and details of any existing debts.
Yes, Shariah compliant home finance is available to both Muslims and non-Muslims who wish to finance their property purchases in accordance with Islamic principles.
In Shariah home finance, the bank earns a profit by leasing the property to the borrower at a predetermined rental rate. The profit is calculated based on the value of the property and the rental period.