I thought this was facinating!
Subsidiary of Bank to Follow Islamic Law (January 3, 2006) -- University Bank in Ann Arbor, Mich., has established a subsidiary devoted exclusively to providing home financing and other banking services to Muslims in compliance with the laws of Shariah, which prohibits paying or receiving interest.
As an alternative to a traditional mortgage, University Islamic Financial Corp. will offer a redeemable lease arrangement under which the bank will hold the property in trust as the buyer makes monthly payments. A set amount of savings is included in each rent payment to build equity in the residence, and the buyer owns the home once the savings reach the amount of the purchase price of the house.
University Bank has provided Muslims with special services over the past two years and has offered such mortgages to 57 families in the Detroit area. Source: Myrtle Beach Sun News (SC) (01/03/06)
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