Istisna Construction Financing Build Your Vision: Fund your construction project from foundation to finish.
What it is
Istisna is an Islamic construction contract used to finance the building of homes from the ground up. NAHL Homes funds your construction project based on detailed specifications, with disbursements tied to verified milestones.
How It Works:
- You present detailed construction plans and project location
- We conduct technical appraisal and cost estimation
- Upon approval, we enter into an Istisna contract
- Funds are disbursed in tranches based on construction milestones
- Upon completion, the property is handed over via:
- Murabaha sale contract, or
- Ijarah lease-to-own structure
Key Features:
- Financing Purpose: Construction of homes, extensions, or multi-unit dwellings
- Delivery Mechanism: Turnkey delivery by developer/contractor appointed by Bank
- Repayment Options: Murabaha, Ijarah, or hybrid upon completion
- Customer Role: Initiates specifications; Bank manages contractor
- Risk Sharing: Bank bears construction and completion risk until delivery
Who Is it For?
- Individuals building on family-owned land
- Faith-based real estate cooperatives
- Civil servants under state housing schemes
- Developers in need of Shariah-compliant off-plan financing
Shariah Compliance
Conforms to AAOIFI Standard No. 10 (Istisna). Contracts are non-transferable and involve real asset creation. All contractors and suppliers must sign halal financing waivers.