No Interest Loans: Non-Traditional Financing Expands Access in New Markets


No Interest Loans: Non-Traditional Financing Expands Access in New Markets

Some people are not able to finance the purchase of a home because their religious practices forbid them from paying interest. These include:

  • Orthodox Jews who cannot pay interest to, or take interest from, other Jews
  • Members of the Hmong community originally from Southeast Asia
  • Some Muslim borrowers who cannot pay interest under any circumstances

However, some lenders are finding ways to help them purchase a home without paying interest. This article describes how two financial institutions address the challenge for Muslim homebuyers in ways that could also be used to help other groups.

Managing the Cultural Divide

Stephen Ranzini, president of Michigan-based University Bank, found some Muslim clients didn’t feel that they could use a traditional bank but were still interested in buying a home.

“When somebody comes in and just challenges a core belief that all banking must include interest, it just blew my mind,” he recalls, “and I’m like, wow, this is really interesting. I mean, I need to learn something more about this.”

During the past 15 years, University Bank has made some $850 million worth of loans in 16 states that are acceptable for the Muslim community.

Rest here…


One Response to “No Interest Loans: Non-Traditional Financing Expands Access in New Markets”
  1. coltonm001 says:

    Isn’t that just dandy that the latest concern coming from lenders is to create no interest loans for Muslim home buyers. HOW FUCKING THOUGHTFUL just really touches my heart as a American who has been shit on for ten years by the American branch of the banking cartel and the banksters are feeling empathy so deeply they want to help the Muslim people. Well good luck with their evil sinister ways and let me know how that works out for you because I will never barrow a dime ever from a bank again and I won’t even be stepping inside one for the rest of my life I’ve developed a medical condition of PTSD at the sign of BOA’s logo, they are detrimental to my health.

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