Selection Criteria for Islamic Home Financing : A Case Study of Pakistan

The aim of this research is to examine the selection criteria of customers for Islamic home financing in the context of Pakistan and also examine these factors with respect to gender, age, income and occupation. This study uses a quantitative approach to investigate the choice criteria for Islamic home financing. All 18 independent variables are taken from previous researches and for analysis descriptive statistics, independent sample t-test and ANOVA was used. Data gathered from the customers of Islamic banking who uses the services of Islamic home financing. Sample size consists of 200 respondents. For the collection of data questionnaire technique was used and close ended questions asked by using 5 point likert scale. The questionnaire designed into two sections one section consists of demographic information and second section consists of selection criteria of Islamic home financing. For this study I selected meezan bank, bank islami, Alflah bank limited (Islamic banking) and Dubai Islamic bank. This study is beneficial for practioners in Pakistan by offering insight into choice criteria for Islamic home financing. This paper would be also beneficial for Islamic bank managers who are also policy makers they can study and plan for attractive schemes and policies for customers through which they can fulfill their needs and expectations. For the researcher, this study will also add the value to the existing body of knowledge by providing an investigation to the selection criteria for Islamic home financing. So far no study has been conducted of selection criteria of Islamic home financing in Pakistan. Study on this topic has never been conducted in the perspective of Pakistan, so this study initiates the choice criteria for Islamic home financing among Pakistani banks customers . This paper provides the useful information for both customers (in selecting Islamic bank) and bank managers to identify the factors to attract the customers. The limitation is based on sample area for the study which is confined to Lahore, Pakistan and due to limited sample size findings can not be generalized. Secondly for this study only four banks are in consideration.