Amna - your class fellow, wants to purchase his own home by taking loan from any bank, you suggested him to go for Islamic Bank since conventional bank involves Riba which is not allowed. Al Baraka Bank proposed him the mode of finance with following details.
Cost of House - 600,000
Policy rate in market is 15%
Financing time - 5 years
• Which mode will the Islamic Bank propose for house financing?
• Write down the Sharia principles of said mode.
• Write down the steps involved in execution of that mode for house financing along with calculations.