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HSBC enhances Islamic finance products

02 June 2005
HSBC is continuing to maintain its pioneering status in the field of Islamic finance products in the UK, announcing enhancements to its Islamic products.

The bank's Islamic finance division Amanah, first launched in 1998, has revealed that residential leasehold flats will now qualify for home finance deals.

"Purchasing a leasehold property using a sharia compliant home purchase scheme is more complicated than using a conventional mortgage because the bank is effectively sub-letting the property to the customer, which requires permission from the leaseholder prior to completion," explained Amijd Ali, UK head of HSBC Amanah.

"HSBC Amanah has the expertise to overcome such complexities and works closely with an independent sharia supervisory committee of world renowned scholars to ensure our products adhere to sharia law.

The minimum balance on the sharia current account has also been reduced to £250 for both new and existing customers.

"The Islamic financial services sector is continually evolving and future developments from HSBC Amanah are likely to include the introduction of Takaful insurance, commercial finance and savings accounts," Mr Ali added.

HSBC Amanah first introduced the sharia home purchase scheme to the UK in 2003. Since then, more than 1,500 people have applied for £176 million of Amanah home finance, and more than 1,000 sharia current accounts have been opened.

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