Economic feasibility of interest free products in Indian commercial banks

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Please use this identifier to cite or link to this item: https://repository.iimb.ac.in/handle/2074/20760

DC Field	Value	Language
dc.contributor.advisor	Sriram, M S
dc.contributor.author	Hashmi, Faizan Ahmed
dc.contributor.author	Gogte, Sharvari Anay
dc.date.accessioned	2021-11-15T11:50:31Z	-
dc.date.available	2021-11-15T11:50:31Z	-
dc.date.issued	2016
dc.identifier.uri	https://repository.iimb.ac.in/handle/2074/20760	-
dc.description.abstract	The report from the committee on medium–term path on financial inclusion released by RBI in December 2015 had recommended commercial banks to have an interest free window. In this context, we have explored the implementation of interest free housing loans (an asset product) in Indian commercial banks. We developed a financial model for such a home loan product based on rental income. Then, we went on to explore the fit of this product in commercial banks in India. Our key finding is that since the rental yields are very low, such a product may not be economically feasible in Indian commercial banks. Hence, for interest free assets to exist, we also need to have interest free liabilities.
dc.publisher	Indian Institute of Management Bangalore
dc.relation.ispartofseries	PGP_CCS_P16_196
dc.subject	Banking
dc.subject	Commercial banks
dc.subject	Riba
dc.subject	Joint ownership
dc.subject	Murabaha
dc.subject	Diminishing musharaka
dc.subject	Cost-plus financing
dc.subject	Lease to own model
dc.title	Economic feasibility of interest free products in Indian commercial banks
dc.type	CCS Project Report-PGP
dc.pages	8p.
Appears in Collections:	2016

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