Islamic norms : the excel formula and home financing models
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 5, Issue 1 (30 Jun. 2013), pp.9-27, 19 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2013-06-30
Country of Publication
Malaysia
No. of Pages
19
Main Subjects
Economy and Commerce
Financial and Accounting Sciences
Religion
Law
Islamic Studies
Topics
- Islamic jurisprudence
- Islamic economics
- Islam
- Housing
- Financing
- Usury
- Diminishing partnership
- Islamic Banks
Abstract EN
This paper adds to the series of writings on Islamic home financing presented and published by the author since February 2010.
It spells out certain norms Islamic banks must observe in home financing and demonstrates that the conventional model based on an Excel formula does not meet the stated norms.
It may well be emphasized that in Islam the question of observing these norms arises before, and not after, the selection of the formula; additional juristic requirements may only follow subsequently.
Is it not then surprising that many Islamic banks are using the formula to determine the periodic installment payments in their home financing programs? The paper finds, for example, the popular MushÉrakah MutanÉqiÎah Partnership (MMP) Islamic home financing model to be non-compliant with the stated norms.
It presents a new model-the Zubair Diminishing Balance Method (ZDBM)-and argues that the alternative is not only fully observant but is superior to the MMP model on some other counts as well.
American Psychological Association (APA)
Hasan, Zubayr. 2013. Islamic norms : the excel formula and home financing models. ISRA International Journal of Islamic Finance،Vol. 5, no. 1, pp.9-27.
https://search.emarefa.net/detail/BIM-717662
Modern Language Association (MLA)
Hasan, Zubayr. Islamic norms : the excel formula and home financing models. ISRA International Journal of Islamic Finance Vol. 5, no. 1 (Jun. 2013), pp.9-27.
https://search.emarefa.net/detail/BIM-717662
American Medical Association (AMA)
Hasan, Zubayr. Islamic norms : the excel formula and home financing models. ISRA International Journal of Islamic Finance. 2013. Vol. 5, no. 1, pp.9-27.
https://search.emarefa.net/detail/BIM-717662
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 27
Record ID
BIM-717662