More Islamic financial institutions have surfaced recently that provide various forms of Islamic financing and riba / interest free loans. Some of these services may include basic personal loans, business loans, loan consolidation opportunities, and more. For people living in Muslim nations there are more opportunities to get such financing as there are more banks that offer riba-free loans to their customers. However, for Muslims living in western countries, such opportunities are limited. This article provides a list of Islamic institutions (along with their list of services) that Muslims in western countries (USA, UK) can contact to seek riba-free personal loans.  A list of Middle Eastern banks offering Islamic financing is also included at the end of the article.

Lariba (Based in California, USA)

Home Financing: Lariba offers a Lease-to-Purchase (Ijara Wa Iqtinaa) concept for home financing and even assists customers in getting a good price for the home they are purchasing.

Auto Financing: For auto financing the bank encourages the customers to do their own market research whilst it too assesses the current prices of automobiles in the market. Thereafter the vehicle is marked according to the market. The automobile is purchased jointly by the company and the customer and slowly the customer buys the company’s share.

Business Financing: Lariba has two models for business financing, joint venture and joint venture lease-to-purchase. While in the first the profit is shared between the company and the customer, in the latter the customer leases the business from the bank and pays a rate calculated according to Lease-to-Purchase.

Trade Financing: The Lariba trade financing concept is Murabha or Cost-Plus. Clients can use trade financing for buying raw materials, import/ export or even for financial inventory.

Equipment Financing: The company and the client both research the cost of the equipment in the market and then it is marked accordingly. The equipment is bought jointly until Repayment of Capital to the company.

Home Construction: The company and the family hold the right to the home together and profit and loss are shared. The home construction loan can be changed into a home financing one.

 More information is available at Lariba.com

 Guidance Financial (Based in Virginia, USA)

 Home Finance: Guidance Financial offers the Declining Balance Co-ownership Program according to which the company and the client jointly purchase the home. It is an interest free loan and with regular payments the client can buy the company’s share in the home.

 More information is available at GuidanceFinancial.com 

 Ijara Loans (Based in US East coast with offices throughout the US)

 Residential Real Estate: Ijara Loans offer home financing which is Sharia compliant.

 Commercial Real Estate financing for offices, retailers and industrial use.

 Mortgage Conversion that is compliant with Sharia laws.

 Interest free small business loans.

 More information is available at IjaraLoans.com 

 Devon Bank (Based in Illinois, USA)

 Home Financing: Homes can be bought by Murabaha, Ijara, or Musharaka.

 Refinancing: Conventional loans can be replaced with Sharia compliant refinancing options offered by Devon Bank.

 Real Estate Backed Lines of Credit

 Construction Financing: Devon Bank offers construction financing that is Sharia compliant. The Murabaha Guidance Line allows customer to finance material and not labor.

 Business Financing: Devon Bank offers real estate purchase for business purposes, real estate backed lines of credit and financing for business and trade goods.

 More information is available at DevonBank.com/Islamic

 University Islamic Financial Corporation (Based in Michigan, USA)

 UIFC offers two home finance programs based on Murabaha and Ijara.

 It also offers alternative to conventional mortgage schemes.

 More information is available at university-bank.com/IslamicBanking/index.html

 Saudi-Arabia based Islamic Banks

• Albaraka Investment and Development Co., Jeddah
• Al Rajhi Banking and Investment Corp., Riyadh
• Arab Leasing International Finance (ALIF) Ltd
• Faysal Islamic Bank of Bahrain E.C., Dammam
• Islamic Development Bank, Jeddah.
• National Commercial Bank Ltd, Jeddah
• Riyad Bank
• Samba
• Saudi Holland Bank
• Bank Al Jazira 

United Kingdom based Islamic Banks

• Albaraka International Ltd, London
• Al Rajhi Investment Corporation, London
• Al Safa Investment Fund
• Dallah Al Baraka (UK) Ltd., London
• Takafol (UK) Ltd, London
• Barclays Capital
• HSBC Amanah Finance
• ABCIB Islamic Asset Management, Arab Banking Corp
• ABC International Bank, London
• Arab Bank Plc, London
• Cedel International, London
• Dawnay Day Global Investment Ltd
• The Halal Mutual Investment Company Plc
• J. Aron & Co. (Goldman Sachs International Finance) Ltd., London
• Islamic Investment Banking Unit (IIBU), United Bank of Kuwait, London