LARIBA

American Finance House, or LARIBA as it is more commonly known, is an organization that offers financing without interest, particularly for housing and vehicles in the United States. LARIBA is a name derived from combining the Arabic suffix “la,” which means negativity, and the word “riba,” which means interest, to represent the principle of interest-free financing. The company mainly provides financing options for housing, vehicles, and microenterprises. The use of the diminishing musharakah method, a classical Islamic contractual type, fulfills a vital requirement of individuals who abstain from modern banking services due to religious beliefs. Even though it has a small market share in the US financial sector, the institution is significant because it provides an interest-free option for housing finance, catering to the requirements of the Muslim community. Therefore, further examination of the institution is necessary. Similar to other Islamic financial institutions, American Finance House must contend with bias against alternative financing institutions and the limitations of a restricted toolkit. The study first presents a general overview of LARIBA, followed by an explanation of the financing method employed.