DAR AL HARB - NEW ZEALAND: ISLAMIC LOANS ARE HERE ! ! !

Islamic Loans Hit NZ

Argosy Finance is shortly to launch the countries first Islamic-style home Loan. In a current environment where many businesses are cautious to mention the words Islam or Muslim this is a positive step to recognise this cultural group and offer a financial service specific to their needs.

These loans have been available throughout Europe and Asia to both Muslim and Non-Muslim home buyers for many years. In essence, an Islamic home loan is without the traditional interest component that New Zealanders are used to.

“Other than the $50 million in mortgage lending that we offer to English speaking New Zealanders every year, Argosy has recently begun taping into the Korean and Chinese market and see a natural synergy in providing a service to the Muslim community” Martin Fuller of Argosy Finance comments.

The Islamic form of finance is as old as the religion of Islam itself. Central to Islamic finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit - interest (known as riba) is not allowed. To make money from money is forbidden - wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.

Argosy’s managing director Martin Fuller comments that there are an estimated 20,000 Muslims living in New Zealand and until now no financial institution has offered an Islamic product for them. “The potential market is too small for the banking sector but viable for a smaller mortgage bank like ourselves, Fuller says.

...




Pertinent Links:

1) Islamic Loans Hit NZ