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FINANCE FACILITY (IES) APPLICATION FORM The Manager Dubai Islamic Bank Pakistan LTD. (DIBPL)Dated I/We hereby apply for Sharia compliant finance facility (ies) from your Bank. My/our particulars are.

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But before you get too excited, that doesn't mean you're getting a super cheap interest-free home. “Overall, Islamic mortgages are a little more expensive than conventional mortgages just because of the transaction costs and the way it's set up,” said Dr.

As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit – interest (known as riba) is not allowed. To make money from money is forbidden – wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.

Any loan given by Islamic Banks must be interest free. Conventional Bank treats money as a commodity and lend it against interest as its compensation. Islamic banking products are usually asset backed and involves trading of assets, renting of asset and participation on profit & loss basis.

Islamic finance rejects the interest rate system Despite the fact that Islamic house financing has no interest rate, the instalments you pay after the mark-up will be nearly identical to the instalment of a conventional loan with an interest rate.

Islam allows only one kind of loan and that is qard-el-hassan (literally good loan) whereby the lender does not charge any interest or additional amount over the money lent. The Bank must share in the profits or losses arising out of the enterprise for which the money was financed.

“Overall, Islamic mortgages are a little more expensive than conventional mortgages just because of the transaction costs and the way it's set up,” said Dr. Mohammad Kabir Hassan, a finance professor at the University of New Orleans and expert on Islamic finance.

Compared to regular mortgages, Islamic mortgage products can be more expensive. The main reason is that Sharia-compliant lenders tend to have higher costs as they're often buying the property outright. As a result, the risk of lending also becomes higher.

In an Islamic loan, the bank does not give you the money but purchase it on your behalf. Once you have paid the entire amount for the purchased product, the ownership of the product is legally transferred to you. The bank may sell the product to you at a higher cost.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232