Comparison of Islamic and Conventional Banking Practices Regarding House Finance in Pakistan: A Case of Hazara Division

Is there any difference between the Islamic and conventional banks products for home financing? The researcher tries to find the answer to this question. Descriptive statistical tools Mean, Median and Standard Deviation are used for data analysis. Some differences were found. Firstly, the customers are more benefited from the Islamic banks products than conventional banks because of partnership base products. Secondly, in conventional banks the level of stress and conflict is comparatively more than the Islamic banks because the risk of default rate is higher in conventional banks. Thirdly, Islamic banks also contribute to the society as corporate social responsibility. These banks as a society member give charity to the needy people which it collected form the customers delayed payment. On the other hand the conventional banks shows this amount collected form customers as interest considered as bank income.