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Abstract

The Current Debate about House Financing through Islamic Banks: An OverviewHouse financing by Islamic banks is not a novel point of discussion in Islamic financial sector. Many banks including some leading conventional banks are also offering such type of financing. The most common method prevailed for house financing in Islamic banks is of Diminishing Musharikah (DM). Even though, according to claims of its proponents, this type of financing is getting more popular due to its unique features and adaptability, still it evokes a great debate from different scholars. In this article, an effort has been made to combine some viewpoints of contemporary scholars on DM and key issues in house financing by Islamic banks, along with some observations, suggestions and recommendations. This juristic discussion is particularly based upon the writings of contemporary scholars.