Excel formula and Islamic norms for home financing
This paper is in a series of writings on Islamic home financing. 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 not after the selection of the formula: additional juristic requirements may only follow subsequently. Is it not then queer 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 MMP non-compliant of the stated norms. It presents a new model and argues that the alternative is not only fully observant but is superior to MMP on some other counts as well.
|Date of creation:||02 Nov 2012|
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hasan, Zubair, 2011.
"Riba in La-riba contracts: where to turn in Islamic home financing?,"
35421, University Library of Munich, Germany.
- Hasan, Zubair, 2012. ""Riba in La-riba contracts: where to turn in Islamic home financing?," MPRA Paper 38166, University Library of Munich, Germany.
- Hasan, Zubair, 2011. "Riba in La-riba contracts:where to turn in Islamic home financing?," MPRA Paper 34386, University Library of Munich, Germany.
- Hasan, Zubair, 2010. ""Islamic house financing:current models and a proposal from social perspective," MPRA Paper 31638, University Library of Munich, Germany, revised 02 Apr 2011.
- Hasan, Zubair, 2011. "Islamic house financing:current models and a proposal from social perspective," MPRA Paper 27919, University Library of Munich, Germany.
- Hasan, Zubair, 2012. "Mortgage contracts in Islamic home finance: Musharakah Mutanaqisah program vs. Zubair diminishing balance model," MPRA Paper 39067, University Library of Munich, Germany.
- Matthew Chambers & Carlos Garriga & Don E. Schlagenhauf, 2007. "Mortgage contracts and housing tenure decisions," Working Papers 2007-040, Federal Reserve Bank of St. Louis. Full references (including those not matched with items on IDEAS)
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