Home financing contract for Ijara Loans

Answered according to Hanafi Fiqh by

I’ve been trying to find out if the home financing contract for Ijara Loans is Sharia compliant.  Please let me know how I can send it to you electronically.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

There are three fundamental stages in determining the Shariah Compliancy of any financial product:

1. Shariah Concept:  The underlying financial structure of the financial product should be Shariah Compliant.

2.   Terms and Conditions: The terms and conditions underlining the financial product should be Shariah Compliant in all aspects. Therefore there should be no mention of insurance, impermissible conventional securities, ambiguous terms and other impermissible clauses.

3. Shariah Implementation: The actual contract should be implemented according to the Shariah Guidelines of Islamic Finance and Economics. Furthermore the banking offices of the financial institution should be versed in the Shariah laws of the underlying concept such as Mudarabah, Musharakah and Ijarah.  

To assess the Shariah compliancy of the financing product in question, you may forward the contract to us. We will consider the Shariah Compliancy of the contract according to the above mentioned three principles.

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved,

Mufti Ebrahim Desai.

This answer was collected from, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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