A Comparative Analysis of Islamic Banks and Conventional Banks

Abstract

This article explores the important aspects of buying a house with Islamic banks and conventional banks. Islamic banks operate according to Sharia principles, prohibiting interest (riba) and promoting ethical financial transactions. Conventional banks, on the other hand, offer interest-based financing. Key aspects examined include financing methods, contractual structures, transparency, ethical considerations, credit assessment, down payments, regulatory compliance, and risk-sharing. Understanding these aspects is crucial for individuals seeking to purchase a house and navigate the financial options available to them.