Want an interest free mortgage?

[dixiegrrrrl]

I found this very intriguing:

New opportunities for American households – Muslims and non-Muslims alike.

The business model and growth of the Islamic finance sector – the only financial system in the world today that is based on the teachings of a major religion – may present new opportunities for American households – Muslims and non-Muslims alike.

The Islamic home financing sector is active in nearly 40 states in the United States. While operating on an interest-free business model, Islamic home financial institutions are compatible in every way with modern capitalism, just like conventional financial institutions.

http://www.middle-east-online.com/english/business/?id=31937

[notesdev]

1. The difference is semantic only

"“Rent plus equity” payments are usually equal to “principal plus interest” payments. When the client-partner takes full title of the home, rent payments to the bank partner stop. "


In practice there is no difference between this kind of loan and any other. They are simply calling interest something else in order to exploit a loophole in their religious law.