Lloyds TSB has announced that it is expanding its pilot scheme offering Islamic financial products as it introduces them to its Southampton branch.
The sharia-compliant range includes both current accounts and home finance products, all of which have been developed in consultation with Islamic religious experts to ensure they are suitable for followers of the Muslim faith.
Launched last month, the home finance product, equivalent to a mortgage, is based on the principles of jiara and diminishing musharakah. The bank and the customer jointly buy the property and the customer pays the bank back over a certain period of time.
The current accounts comply with sharia law which forbids the payment and receipt of interest, known as riba.
"We want to offer Muslim customers banking services that meet the needs of their faith, while providing them with all the benefits that they have come to expect from a high street bank," Gordon Rankin, current accounts director at Lloyds TSB, told the Guardian.
"They will be able to manage their money in accordance with Islamic law, but still have access to around 2,000 branches across the UK and the ability to bank online, over the phone or using a cashpoint."
The Southampton branch is the fifth UK Lloyds TSB bank to see the introduction of the Islamic-approved products. They were first piloted in London, Birmingham and Luton, and extended to Dewsbury last week. Click here to find out more about banking.
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