Abstract
The development of islamic banking in indonesia is a manifestation of the public’s demand for an alternative banking system which in addition to providing sound banking or financial services and also complies with sharia principles. In economic develoment activities, the financial sector is one of most important sectors in the success of an achievement in the indonesian economy. One of which is the kediri branch of the islamic bank of East Java, which provides financing for people who want to have a house namely the KPR IB Barokah financing. Kpr Ib barokah is short, medium or long-term finance the purchase of residential houses (consumptive) and renovation,both new and used ind developer and non – developer environments, in accordance with sharia principles and the contracts used are murabahah,IMBT and MMQ contracts. The formulation of the problem is about how the financing mechanism for Kpr Ib Barokah and whether the murabahah contract in Kpr Ib Barokah is in accordance with sharia principles.Key word: Islamic banking, KPR Financing,Murabahah
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