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

Hasan, Zubair (2012): "Riba in La-riba contracts: where to turn in Islamic home financing? Published in: Journal of Islamic Banking and Finance , Vol. 29, No. 3 (September 2012): pp. 1-12.

Abstract

This note demonstrates that the Msharakah Mutanaqisa home financing model is worsethan the conventional interest bearing loan financing; it is not only based oncompounding of return italso passes the ownership to the customer at a slower rate. The purpose is to draw attention of the Shari'ah scholars, bankers and regulators of Islamic bankers with a view to elisit comments for editing before its publication.

• Item Type: MPRA Paper
• English Title: “Islamic home finance: legality, pricing, and profit - Models compared”
• Language: English
• Keywords: Islamic ban on interest, Compounding of return on investment; Islamic verdict
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages

References

1. Hasan Zubair 2011: Islamic home finance in the social mirror, ISRA: International Journal of Islamic Finance, Vol. 3, Issue 1, June pp.7-24

2. Hasan, Zubair (2011): Diminishing balance model for Islamic home finance – final version, Journal of Islamic Banking & Finance, July- September issue