Islamic finance has huge potential: CE
Would like to know how do get Islamic home loan in HK. Anyone know about it??
Thanks!!
Islamic finance has huge potential: CE
Would like to know how do get Islamic home loan in HK. Anyone know about it??
Thanks!!
No there is interest, just they play silly games. Instead of lending the money to buy the house, with interest, the bank will buy the house from the seller and then sell it to the buyer (at a profit), and then allow the buyer to pay back the house in interest-free installments. The benefit to the buyer is that there are no penalties for late payment, but on the downside the buyer will need to show a lot of collateral.
Best bets would be to see if the middle eastern banks or the malaysian / indonesian banks have some facilities for their muslim clients.
Below should have it. They recently got an Islamic banking license from the HKMA.
Hong Leong Bank Berhad, 12F The Center, 99 Queen's Road, Central, Hong Kong. Contact us @ Tel: (852) 2283 8818
Ask Public Finance too (I had a course with that name in Economics at university) - they're Malaysian (Public Bank). But somehow I think in HK they're too established locally to innovate, still it doesn't hurt to ask.
Last edited by HKFella; 07-11-2008 at 03:59 AM. Reason: two buts
to be frank I am not sure how many banks in HK wld actually want to offer you islamic house financing in view that it would not be easy to set up a product programme and the demand might not be high.
there might be some that would let you get an offshore financing to purchase a HK home.
remember, this is a very legalistic approach to customise a regular loan transaction into something that is a purchase and lease. Banks don't work in that domain generally.. so to have one in HK is quite stretch.