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Riba in La-riba contracts:where to turn in Islamic home financing?

Hasan, Zubair (2011): Riba in La-riba contracts:where to turn in Islamic home financing?

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Abstract

Even as the BBA model has not made a complete exit from Islamic home financing, the musharkah mutanaqisa partnership (MMP) model is fast gaining popularity with the jurists and the bankers alike as a truly interest free alternative. This paper reproduces our earlier evidence that the MMP model is no different from the conventional home financing involving interest. In this context it refers to actual cases from some countries, especially the US, where MMP is gaining ground. We shall reiterate that our Diminishing Balance Model (DBM) in several ways over the MMP..

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