Qard Hasan Based Cooperative Model for Home Financing and Its Effects in Home Ownership and Real Estate Development

The present study aims to explore how Qard-Al-Hasan based interest free, debt free, ethical, and wonderful cooperative model can be employed for financing homes for the cooperative members. The study is based on theoretical, mathematical, and multiple regression model where partial derivatives are applied for evaluating the effects and contributions of each of the explanatory variables on the dependent variables. The findings of this study suggest that if the Qard-Al-Hasan based cooperative members are honest, sincere, dedicated and committed, then they will be able to mobilize more and more Qard-Al-Hasan funds which can be used to mitigate their homelessness problems. The poor cohort of population have little access to banking and credit facilities and therefore, they are often out of the monetized sectors of the economy. This Qard-Al-Hasan based cooperative model provides comprehensive financial supports for such disadvantaged cohort of population. The findings also suggest that the Qard-Al-Hasan based cooperative members will also devote themselves in halal business activities and thus will be able to continuously mobilize financial resources which are expected to make it easier for owning homes for all cooperative members. This study also proposes to form Qard-Al-Hasan revolving funds from which each member will be able to borrow and lend Qard-Al-Hasan funds without Riba and thus will never face any shortages and deprivation of financial resources. This study also suggests the cooperative members to engage in real estate development and property management activities which will provide plenty of Qard-Al-Hasan fundings on continuous basis and thus will further facilitate the process of home ownership in Qard-Al-Hasan based cooperative model.