There are no conventional banks in Pakistan that offer interest-free loans. Islamic banking principles, which are followed by many banks in Pakistan, prohibit the charging or receiving of interest. Instead, they offer Shariah-compliant financing options such as:
- Murabaha: This involves the bank purchasing the asset and then reselling it to the borrower at a markup price.
- Ijarah: This is a lease agreement where the bank owns the asset and leases it to the borrower for a specific period.
- Musharakah: This is a profit-sharing partnership where the bank and the borrower jointly invest in an asset.
However, several Islamic banks in Pakistan offer these alternative financing options, which are considered interest-free. Some of these banks include:
- Meezan Bank: https://www.meezanbank.com/
- BankIslami Pakistan: https://www.bankislami.com/
- Dubai Islamic Bank Pakistan: https://www.dubaislamibank.com.pk/
These banks operate under Islamic banking principles and provide financing solutions that are compliant with Shariah law.
