Department of Finance

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Browsing Department of Finance by Author "Mansoor Javed, Muhammad"

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    Islamic house finanacing in Pakistan
    (University of Management and Technology, 2014) Mansoor Javed, Muhammad
    This study analyzes the demand for house financing offered by Islamic banks by exploring the nature of demand as well as highlighting its major determinant. The paper also strives to find out the level of knowledge of people regarding Islamic financing, factors encourage them to buy their own house, their perception of Islamic house financing and finally those features which influence customers’ decisions relating to the selection of finance provider. The population of the study is residents of Lahore who intend to buy their own house within next three years. A survey has been conducted using convenient sampling technique taking a sample size of 300 respondents. The response rate of survey is 81%. The study found that nature of demand for house financing offered by Islamic banks is conventional. Later, logistic regression has been applied to find out the affect of knowledge, quality of service and sincerity with religion on such demand. The results indicate that religious factor and knowledge affect the demand for Islamic house financing negatively whereas quality of service affect such demand positively. However, only the affect of quality of service on demand is statistically significant. On the other hand, study found that people have general knowledge of Islamic financing but they do not have specific knowledge of Islamic house financing. Further, male respondents have higher knowledge than the knowledge of female respondents. Moreover, people with higher qualification have higher knowledge. Income rise is the most important factor which encourages people to buy their own house. It is also found that people perceive Islamic house financing similar to conventional house financing. Finally, the survey also highlight that the cost of service is the most important criterion used by the potential clients to select their finance provider.