What is Halal Loan initiative launched by Justin Trudeau in Canada?

New Delhi: Canadian Prime Minister Justin Trudeau has stirred controversy with his announcement of a Halal loan program tailored for Muslims in the country. Under this initiative, the government will offer home loans compliant with Sharia law principles. While intended to facilitate home ownership for Muslims, the move has ignited debates across Canada.

Trudeau is known for his support to Khalistan movement

Trudeau, known for his support of the Khalistan movement, unveiled the Halal loan scheme during the presentation of the Union budget for 2024-25. The program aims to provide Muslims with access to housing finance aligned with their religious beliefs. However, the announcement has drawn criticism from segments of the Canadian populace, questioning the secular foundation of the country and accusing the government of religious favoritism.

Halal loan operates under Sharia law

Halal loans operate under Sharia law, where the concept of interest (riba) is prohibited. Instead of conventional mortgage arrangements, borrowers make payments akin to rent until they attain full ownership of the property. Trudeau's administration asserts that the introduction of Halal mortgages addresses the needs of Muslim Canadians while respecting their religious convictions.

The budget announcement signals Trudeau's commitment to enhancing accessibility to housing for diverse communities in Canada. Amidst concerns over escalating housing prices and restrictions on foreign property ownership, the government aims to foster inclusivity and address the housing needs of its citizens.

What is Trudeau's plan for Halal loan program?

Trudeau's Liberal government has initiated consultations with financial institutions and community stakeholders to refine the implementation of the Halal loan program. Through these discussions, the government seeks to ensure that its policies align with the diverse requirements of Canadians aspiring to homeownership.