A mode of financing adopted by financial
institutions in Pakistan, according to which the financial
institution provides part of the finance for construction of a
house. The client and the financial institution share in the
presumptive rent of the house. Since maintenance and taxes are
to be paid by the client, a suitable allowance is given to him
in the share of the rent. Similarly, the financial institution's
share is adjusted upward to provide for administrative expenses.
But all legal charges are paid by the client and the house
remains mortgaged until the financial institution receives back
all due to it.
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