actuall they offer loan on the basis they’ll share 80% of the price & if one want to pay in 60 installments the amount then be devided into 60 units one unit to be paid each month. they will take rent on the remaining units @8.5%.
We were unable to see the details of the offer to purchase interest free loans on the site.
According to our understanding from the details mentioned by you, the bank enters into a partnership with potential buyers to purchase the house. The partner who resides in the house also pays rentals to the bank equivalent to the bank’s share of the house. The rentals gradually decreased as the partners share on the house increases. This is called ?diminishing partnership? which is permissible on condition the contracts are drawn up according to Shari?ah and more importantly also implemented accordingly.
It may well be that the rules are Shari?ah compliant but they are not implemented according to the Shari?ah. That does not make the transaction Shari?ah compliant.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai