Islamic home financing is a system of financing that complies with Islamic law (Shariah), which prohibits the payment or acceptance of interest or Riba. Instead, Islamic financing uses contracts such as Murabaha (cost-plus sale), Musharakah (partnership), and Ijarah (leasing), where the bank and customer share the risk of investment and benefits in a manner compliant with Islamic principles.
Frequently Asked Questions (FAQs) about Islamic Home Financing
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What is Islamic home financing?
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How does Islamic home financing differ from conventional home loans?Unlike conventional loans that charge interest, Islamic home financing operates on a profit-share or rental basis. There are no interest charges, and the arrangements are structured in a way that avoids Riba, adhering to ethical financial practices as dictated by Shariah law.
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What types of Islamic home financing products does AGFL offer?AGFL offers several Shariah-compliant home financing products, including:
Home Purchase Plans: Financing the purchase of a new or existing home through partnership or lease-to-own agreements.
Construction Financing: Partnering with you to finance the construction of a new home.
Home Renovation Financing: Providing funds for upgrading or expanding your existing home.
Balance Transfer Facility: Transferring your existing home finance from another bank to AGFL under Shariah-compliant terms. -
Are there any eligibility criteria for applying for Islamic home financing with AGFL?Yes, applicants must meet certain criteria which typically include age restrictions, income stability, employment status, and a good credit history. Specific details can be obtained through our customer service department or by visiting our branche.
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What documents do I need to apply for home financing with AGFL?You will typically need to provide:
Proof of identity (CNIC, passport)
Proof of income (salary slips, bank statements, business documents if self-employed)
Proof of residence
Documentation related to the property (title deeds, NOC from the development authority, etc.)
How can I calculate my monthly payments for Islamic home financing?
AGFL provides an online calculator on our website where you can input the financing amount, tenure, and profit-sharing terms to estimate your monthly payments.
Is Takaful insurance required for AGFL home financing?
Yes, Takaful, which is Islamic insurance, is required for home financing with AGFL. It provides coverage for the property against damages, and in case of the demise of the borrower, ensuring the property is paid off and transferred to the heirs without burden.
How long does the financing approval process take?
The approval process can vary depending on the completeness of your application and the type of financing. Typically, it takes about 2-4 weeks from the time all required documentation is submitted.
Can I repay my financing early?
Yes, AGFL allows early repayment of your financing. There are no penalties for early settlement, which is in line with our commitment to ethical financial practices.
Who can I contact for more information or to apply for home financing?
You can visit AGFL branch, contact our customer service hotline, or submit an inquiry through our website. Our dedicated team of professionals is ready to assist you with any questions you may have.
Do You Have Questions About Islamic Home Financing?
Get Answers from Our Experts.
Your Path to Homeownership
B-139, Sindhi Muslim Coperative Housing Society Block-B, Shahrah-e-Faisal, Karachi, Sindh – 75350
AGFL – NTN 4471867
AGFL – CRN 0175272
B-139, Sindhi Muslim Coperative Housing Society Block-B, Shahrah-e-Faisal, Karachi, Sindh – 75350
AGFL – NTN 4471867
AGFL – CRN 0175272
House Financing License Number: SECP/LRD/54/AGFL/2022
If your complaint has not been adequately addressed by us, you may lodge your complaint with the Securities and Exchange Commission of Pakistan (SECP). Please note that the SECP will only entertain complaints that were initially directed to the company and remain unresolved. Additionally, complaints that fall outside the SECP’s regulatory domain will not be entertained.
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