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Est. monthly (@ 20.5%)
PKR 2.78 Lakh
Financing PKR 1.6 Cr over 20 years. Actual rate varies by bank — compare below.
Islamic home financing avoids interest (riba). The most common product is Diminishing Musharakah: the bank and buyer co-own the property, the buyer gradually buys out the bank's share, and pays rent on the portion still owned by the bank — a profit-sharing model certified by Sharia scholars.
| Aspect | Conventional | Islamic |
|---|---|---|
| Basis | Interest on principal | Co-ownership + rent (profit-sharing) |
| Riba (interest) | Yes | No — Sharia-compliant |
| Structure | Loan | Diminishing Musharakah / Ijarah |
| Early settlement | May carry penalties | Often no penalty |
The Islamic home-financing model where the bank and buyer co-own the property. The buyer gradually purchases the bank’s share over time and pays rent on the portion still owned by the bank — a profit-sharing structure with no interest (riba).
Conventional loans charge interest on the outstanding principal. Islamic financing (Diminishing Musharakah / Ijarah) is asset-based and profit/rent-sharing, certified by Sharia scholars. Monthly costs can be similar; the structure differs.