Islamic Financial Institutions provide a range of products and services to cater to their customers who require financing, which are either equity or debt based. In equity-based financing, both parties are willing to contribute the capital and work to share profits and losses. Under debt-based financing, a customer has an obligation to make specified payments according to predetermined conditions.
Whether you desire to finance your future home, vehicle or simply open a savings account, Islamic service providers offer a wide selection of Shariah-compliant retail products catered to your needs.
Similar to conventional home loans, the payment for a property is made by the client in installments after it is bought by the Islamic bank and either sold or leased. The difference lies in the absence of interest and the application of partnership, mark-up sale and leasing structures.
Vehicle financing that is Shariah-compliant can be obtained at Islamic banks through different arrangements, such as a leasing agreement after a period of which the customer gains ownership, or where the bank sells the vehicle at a mark-up price that is clearly communicated to the customer.
The Shariah-compliant credit card is issued as interest-free by an Islamic Financial institution. When this credit card is used to purchase goods or services, the Islamic bank will render the transaction on the customer’s behalf whilst simultaneously selling it back to them. The credit card is payable over a deferred period of time via installments.
An individual can meet obligations that require financial assistance in compliance with the Shariah guidelines through Islamic personal financing. It is very transparent and the customer will be made aware of the exact amount to be paid on a monthly basis and for how long.Either a leasing arrangement can be drawn up or a monetisation...
Islamic bank accounts offer similar day-to-day services as conventional banks and individuals can opt for current, savings or investment accounts as desired. However, as with all Shariah-compliant products, interest is absent and unless it is a current account where benevolent loans (Qard) are involved, marginal profits can be obtained in the savings and investment accounts...