Diminishing balance model for Islamic home finance
This brief note supplements the argument of an earlier paper Islamic Home Financing: Current Models and a Proposal from Social Perspective”; it explains that the Diminishing Balance Model for Islamic home financing is operable in a Shari’ah compliant way even without the Islamic Banking laws accommodating the notion of constructive ownership as envisaged earlier. It further clarifies how the new model scores over the models currently being used for the purpose.
Islamic home finance , Interest based model , MMP model , Diminishing Balance model
Hasan, Zubair. (2011). Diminishing balance model for Islamic home finance. Journal of Islamic Finance & Banking, 30 (3), pp. 40-46.
International Association of Islamic Banks Karachi