Islamic laws and applying for a loan - ijaraCDC

Islamic laws and applying for a loan

One of the things that surprises Muslims that are applying for Western-style loans is the fact that Islamic laws don’t necessarily contradict what they need to do to get one of these mortgages. In fact, sharia law rules aren’t much different when it comes to North American style loans except for the fact there is no riba involved with the Islamic variety. You still need to have a good down payment and excellent credit rating to get either kind. Of course one of the only differences is in the fact that Islamic laws and the mortgages that result from them dictate the title of the house is held by the trust and that’s who you make your payments to to avoid usury. Islamic laws as they pertain to applying for a loan follow a great many parallels whether you’re looking at an jara loan or a Western-style mortgage. More evidence is in the fact that you need to be able to show any lending institution proof of your employment. It stands to reason that any bank or other financial institution will want to know that you don’t represent an unusual risk for repayment and having a good steady job over time is an indication that you are credible.