DAR AL HARB - U.K.: SHARI'AH COMPLIANT BANKING GROWING IN THE U.K.

UK banks offer better services for Muslim customers

When it comes to banking, Muslim customers generally need different services than other customers in order to comply with Sharia, the compliant consumer banking. HSBC was the first bank to offer services to Muslim customers when it set up ‘Amanah Finance’ in 1998 which is a Global Islamic financial service division.

Now more UK banks are joining in as the demand for Muslim services grows. Sharia compliant bank accounts, home loans and car finance which are offered in a different way to how they usually are in order to avoid interest, are offered by banks such as Lloyds TSB. Other services which are offered by the Islamic Bank of Britain include savings accounts and West Bromwich Building Society also offers child trust fund savings accounts.

The reason Muslims do need different options is because receiving or paying interest on anything is against the Islamic law. This means that banks such as HSBC have to offer their products in a different way but they do not generally mind as the Muslim market offers a lot of business. HSBC for example buys the house jointly with its Muslim customers and it is held in a Trust for the bank and the customer. Finally the customer pays rent for the house and they buy the banks share gradually over time. Whilst it may be a more complicated way of doing it, it works out well for both customer and bank. No doubt many non-Muslims would love that option also!

Overall the fact that more banks are getting involved is great news for Muslims around the UK. It means that they now have more choice and it shows that Britain is accepting them and their culture too. The Islamic mortgages are gaining popularity all the time and since 2003 there have been over 2,000 customers signed up for these mortgages.



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1) UK banks offer better services for Muslim customers