Posted by: islamicfinancingnews | April 14, 2014

What riba means in relation to islamic home financing

Although islamic mortgage financing isn’t really all that complicated, there are a few terms that most people need clear definitions for and riba is one them. This concept is forbidden under Sharia Law but its meanings vary from scholar to scholar. Some say it refers to only excessive interest charges, while other learned Islamic clerics say in relation to islamic home financing, riba covers all interest.

Some modern scholars believe that inflation is the cornerstone that can judge the amount of interest that’s allowed. They feel that interest charged up to the value of buying a homeinflation does not include excessive profits and therefore is not in contravention of Muslim belief.

It’s important to understand all the different aspects involved when you’re looking for ijara loans to buy some manner of property in North America. Getting the right firm on your side that understands all the different variables as they pertain to Muslims is critical. Regardless of the company that you finally decide on, they should be fully compliant in all the relevant Fatwas as they pertain to islamic mortgage financing.

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