What is about India’ Islamic home loan with no Riba (interest)
In India, Islamic mortgage without interest is by definition a an interest-free loan (no Riba) provided on a goodwill basis, designed for Muslims who wish to avoid riba (interest), which is prohibited in Islam; instead of charging interest, these mortgages are structured around Islamic finance contracts that remunerate the Indian ilsamic lender with profit.
In India, a halal home loan makes sure that the Indian Islamic bank either buys the property and sells it at a profit in installments, leases it to the customer with ownership transfer over time, or co-owns the home with the buyer while gradually transferring full ownership.
In India, the Sharia compliant mortgage without riba gives access to Islamic finance that is crucial for India’s Muslim community, who seek to align their financial activities with their religious beliefs given Islamic finance products allow them to engage in essential economic activities, such as buying homes, without compromising their adherence to Islamic principles.
In India, the Islamic mortgage without interest despite offering benefits, the Muslim community in the country faces challenges in accessing Islamic finance, the primary hurdle is the lack of widespread availability and awareness of these products, finally, regulatory frameworks and banking policies in India are predominantly structured around conventional banking models, which makes the integration and acceptance of Islamic financial products a complex process.
Can I get an Islamic mortgage in India without paying interests ?
No, India does not have a formal Islamic mortgage system available to individual homebuyers.
That said, there are indirect or emerging options. Some Islamic cooperatives and non-banking financial institutions (NBFCs) in India offer small-scale Shariah-compliant financing, often structured as Murabaha (buy-sell with profit) or Ijara (leasing).
Is there an Islamic bank in India ?
In India, there are no full-fledged Islamic banks operating today.
The Reserve Bank of India (RBI) has explicitly decided not to pursue Islamic banking under the current regulatory framework, making it effectively unavailable in the formal banking sector.
In Indian, are there Islamic alternative lenders that offer Halal mortgages without interests ?
Islamic—or Shariah-compliant—alternative lenders in India that offer halal-style financing (particularly for housing or asset purchase), which avoid traditional interest (riba):
1. Taqwa Credit Co-Operative Society (Karnataka)
- A cooperative society offering “Riba-Free” financing, including property-related schemes.
- Structured on Islamic principles such as Murabaha (cost-plus sale) or Ijara (leasing), though details are limited.
ItaqwaItaqwa
2. Union Cooperative Society Limited (Hubli, Karnataka)
- Listed as offering Islamic loans and mortgages structured to comply with Islamic finance standards, according to an Islamic finance portal.
- Specific product details (e.g., eligibility, structure) are not clearly provided.
SHARIA BANKING
3. Cheraman Financial Services Ltd (Kerala)
- Functions as a non-deposit-taking NBFC (Non-Banking Financial Company) registered with the RBI, offering Shariah-aligned financial services.
- Potentially facilitates Islamic-style lending models, though exact products such as home financing are not detailed.
4. Shariah-Compliant NBFCs & Cooperatives (General):
- Several Islamic microfinance and non-bank entities have operated using models like Murabaha, Musharaka, Mudaraba—e.g.:
- Barkat Investment Group (BIG)
- Baitun Nasr Urban Cooperative Credit Society (BUN)
- Al-Najib Milli Mutual Benefits Limited (AMMB)
- Al-Barr Finance House Ltd. (ABFL)
- Many of these are small-scale, have had inconsistent regulation, and some have concluded operations due to systemic challenges.
5. Fintech & Leasing Models
- Some platforms like Ecarworld.in (based in Bangalore) use Ijara (rent-to-own) for vehicle financing and offered moratoriums without extra cost during the pandemic.
- Rehbar Financial Consultants similarly structured leasing-based support.
- Janseva Co-op Credit Society (Mumbai) offered Murabaha-style lending and waived penalties during lockdowns.
- These demonstrate the presence of Islamic financing modes in non-housing contexts, showing potential pathways for asset financing.
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6. Zamzam and Sahulat
Zamzam Capital
– SEBI-registered Islamic finance advisory and investment firm, focusing on halal stocks, portfolios, and compliance screening—not lending.
🔗 zamzam-capital.com
Sahulat Microfinance Society (New Delhi)
– NGO founded in 2010; provides interest-free microfinance via affiliated cooperatives nationwide, recognized for promoting riba-free credit access.
🔗 sahulat.org