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What’s your Understanding of an Islamic Mortgage

You have heard a lot about the banking sector in the UAE and their professional services being provided to high net worth individuals. Today we will discuss something related to different loan packages being provided by Dubai banks. There are different types of loans including investment loans, business loans, personal loans, home loans, and mortgage loans. Whatever, it has become a need of the day to seek out the future planning’s to handle financial matters. For this purpose, the best place in Dubai is the banking sector. If I say it is very necessary for locals as well as for expatriates to approach a bank for a specific loan, it would not be wrong. 
Things were pretty hectic and boring in the past to handle banking services but now the situation is completely different. The involvement of the internet and fast-growing technological equipment has shifted the paradigm completely to avail the services of a bank in the form of e-banking options. 

There is a similar case with the banking sector in Dubai that has developed very much and now contributing a lot in the development of the region through foreign investors. Why outsiders prefer to invest in UAE? Very simple, the economic stability and best investment opportunities attract them and force them to get maximum profit from different sectors. Such powerful economic conditions provide grounds to banks to help outsiders to get settled in this region by taking a loan option. To take a loan for a home purpose is what we call a mortgage loan. The next question is what is an Islamic mortgage? This is a very different term and to understand this one has to get an idea about the banking sector in UAE. 

Conventional Mortgage vs Islamic Mortgage

From the above-mentioned debate, we hope that you get an idea about loan services and mortgage loans. Now we will discuss here a difference between an Islamic mortgage plan and a conventional loan method. The banking sector in the UAE is divided into three major categories as:
1. Conventional banking units
2. Islamic banking system
3. Investment banking

Here we will discuss only the Islamic banking system which is distinguished for others in terms of the interest rate. You can get a mortgage loan from any of the above mentioned three banks but if you have a desire to get a mortgage loan without interest then Islamic banks can only help you. This is the best way for expatriates to manage their own homes in this region. For the best services, we suggest you approach a bank which is working with your company. 

This is completely a different system from the conventional banking method in which all banking services are provided through an interest rate. The lender is always on the safe side after providing a loan and the borrower is the single stakeholder either in profit or a loss. But if we have a look at the Islamic system, lender and borrower are on the same page while profiting and loss situation. You can also get the Islamic credit card facility for your routine based tasks. 
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