Pfida, an ethical fintech, has developed their system to help people purchase homes without falling into debt and without being charged interest.
London, England, July 03, 2024 – Pfida, a fintech company pushing for social impact, has developed their system to help people purchase homes without falling into debt and without being charged interest.
Pfida’s home financing offer is a partnership-based system in which people can purchase a home, interest free and debt free. This system has been designed to bring stability to the housing market in the United Kingdom and service the most financially excluded groups hoping to explore home ownership options. Their home finance product provides users with the ability to act as partners with Pfida by putting in a minimum of 15% deposit towards the property, which then becomes the purchaser’s equity.
Raza Ullah, Founder and CEO of Pfida
According to Raza Ullah, Founder and CEO of Pfida, one of the reasons that housing prices in the U.K. are so high is due to inflation in the economy caused by the constant printing of money. With the savings account offering that Pfida provides, their customers can receive competitive returns on their savings without any interest rates and earn a profit share from Pfida. This enables the company to build the capital needed to offer their home finance offerings.
Additionally, Pfida offers several benefits to their customers such as an equity buffer feature and potential rental discounts. The fintech also gives homebuyers the ability to pay more towards the purchase of equity, all through the online dashboard and without any additional charges.
The home financing system that Pfida has developed is intended to end the cycle of debt, which according to Raza is unavoidable when dealing with a traditional mortgage. He says the current monetary systems in place throughout the U.K. have caused mass inequality between the rich and the poor. It causes people to take on large amounts of debt and get stuck trying to pay it off, which in turn leaves them unable to save money.
“Our business is entirely for the people, so there’s no venture capitalists or anything like that, it’s all community funded. It’s people believing in our mission and many of them have put their hard earned savings into the business to help others buy homes with no debt or interest rates,” says Raza.
Pfida Logo
According to Raza, one of the top priorities for Pfida is to show the world there is a more ethical and sustainable way of financing homes for people to buy. To accomplish this, Pfida strives for customer awareness about the alternative options they offer. Additionally, Pfida hopes to influence other financial institutions to adopt similar services, allowing the world to experience the positives of an equitable and fair housing market. Raza understands this requires much time and effort to bring tangible impacts, but the Pfida team is invested in doing so.
Since Pfida is an organization focused on creating social impact, without seeking people who are looking for the highest returns on their investments. Attracting people who align themselves with the social causes that Pfida is pursuing will enable the company to raise purpose-led capital through their savings accounts.
Coming from a financial services background, Raza had a life-changing experience in 2016. During his pilgrimage to Mecca, he had the realization that with his skillset he needed to do something for the housing market in the U.K., which he says is currently suffering from inflation and high interest rates. He gave up the current job he held and set off to help at least one or two families avoid acquiring debt when purchasing a home. The very first property that was financed through Pfida was out of Raza’s life savings, and that’s a decision he doesn’t regret.
“I never could have imagined at the beginning that we would grow to a team of 42 plus, and we’re expecting to be around 60 by the end of the year, and serving as many customers as we have has been one of the most rewarding experiences of my life,” says Raza. “It’s all about genuinely just trying to help people into homes without that death grip of debt around their neck.”
