http://www.thriftyscot.co.uk/Finance-News/012007/uk-banks-offer-better-services-for-muslim-customers.html

UK banks offer better services for Muslim customers

UK banks offer better services for Muslim customersWhen 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.
January 29 , 2007

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