NatWest bank has launched its first halal mortgage product, which is compliant with Shariah (Islamic) law. The new mortgage product available from NatWest Business Banking is for commercial properties and has been launched in response to strong customer demand and is specially tailored to the needs of the country’s two million Muslims. In accordance with Shariah law, the product will not charge interest. The bank is using the Islamic ‘Murabaha’ structure.
This means the bank will purchase the property from the vendor and immediately sell it to the customer. The price paid by the customer to the bank is repaid over a deferred period, and will consist of the price paid by the bank (less any customer deposit), and an element of profit for allowing repayment over a period of time. It has also been sanctioned by an internationally renowned and independent board of Islamic scholars.
NatWest has over 40 relationship managers across the country who are specially trained to meet the needs of the Islamic community, as well as a number of specialist banking teams to meet their needs, at the following locations: Bradford, Newcastle, London and Birmingham. The product is the first Shariah compliant facility that NatWest Business Banking has launched.
Chief executive officer of NatWest’s Business Banking team, Paul Lynam said: « We are committed to meeting the business needs of all customers. By introducing a Shariah compliant commercial mortgage, we are demonstrating our commitment to this growing community, and the broadening of our focus on this market. »
Source: M.E.N Media
With the guidance of a Shariah Supervisory Board, The Royal Bank of Scotland has created a specialist product – ABT Finance, which allows companies to purchase commercial property with non-interest bearing finance.