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Halal’ Personal Finance is another first from Islamic Bank of Britain

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Points of Essence:

  • Islamic Bank of Britain now offers the sole Shariah compliant unsecured personal finance in UK.
  • This financing will operate under the Islamic principle of Murabaha with deferred payments to generate cash funds between £1,000 and £20,000.

Islamic Bank of Britain, the UK’s only totally Islamic British bank, has launched a Sharia’a compliant personal ‘loan’ facility, making it the only provider of ‘Halal’ unsecured finance in the UK.

The new unsecured facility allows customers to generate cash funds between £1,000 and £20,000 using the Islamic principle of Murabaha with deferred payments. The end result is that consumers can get a finance facility similar to a conventional loan but in accordance with the Muslim faith which prohibits the use of interest.

Michael Hanlon, managing director of Islamic Bank of Britain explains: “We aim to offer our customers as much choice and flexibility as possible when it comes to their finances. As a result, we are often first to launch new products. We are already the only British bank offering Sharia’a compliant savings accounts and now we are also the only provider in the UK offering Sharia’a compliant unsecured finance.”

How It Works
The process is simple for the customer, and only requires one visit to the branch or application via post. Islamic Bank of Britain then works to ensure that the personal finance facility is run in accordance with Sharia’a. The Bank buys commodities and then sells them to the customer for the cost plus the Bank’s profit. The customer then becomes the owner of the commodities. An independent agent then sells the commodities on the customer’s behalf for the market price and puts the resulting cash into the customer’s account for the customer to use to finance their purchase. The customer then pays the bank in monthly instalments over a period of time. Repayment periods of 12 to 60 months are available.

It marks the first time that Britain’s 1.8 million Muslims have had access to a personal finance facility from a British bank which is wholly operated in accordance with Islamic Sharia’a principles.

Islamic Bank of Britain is regulated by the FSA and meets UK banking regulations and safeguards for the customer. It opened its first branch in London last year, was admitted to trading on AIM, a market operated by the London Stock Exchange, in October and now also has five branches in Birmingham, Leicester and London with a further five more branches planned for 2005.

Customers outside of the branch areas can use the bank’s services via telephone and postal banking (to the Bank’s UK based customer service centre. Telephone 0845 6060 786). An internet banking service is planned for launch at the beginning of 2006.

Islamic Bank of Britain ensures that it does not compromise Islamic principles. All products and services are overseen and approved by a Sharia’a Supervisory Committee comprised of world- renowned experts in the implementation of Islamic principles and their applications within modern-day financial institutions.

To find out how to apply for an Islamic Bank of Britain Personal Finance Facility (18 years or over and UK resident) or for more information on other Islamic Bank of Britain products and direct banking service call 0845 6060 786 or visit www.islamic-bank.com

Source: http://www.halalproduct.org

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Written by Suapi Shaffaii

August 25, 2008 at 2:54 am

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