South Africa is one of many African countries that enable citizens to benefit from the unique benefits of Islamic financial services.
FNB Islamic Banking CEO, Amman Muhammad, explains how Islamic Banking works:
Islamic banking vs conventional banking
The fundamental difference is that Islamic banking is strictly aligned with Islamic jurisprudence. Such principles are then applied consistently across all solutions, monitored by independent Islamic legal experts.
It’s available to everyone, not just Muslims
Due to the alignment with underlying Islamic principles, people often assume that non-Muslims cannot make use of Islamic banking product – this is not the case. Islamic banking solutions are available to both Muslim and non-Muslim people. In fact more non-Muslim South Africans are starting to make use of Islamic financial services.
Some of the ways consumers can use Islamic finance
Purchasing property: You choose the property you wish to purchase – the financial institution will do the normal affordability checks, purchase it after you qualify and prepare an agreement which allows you to take gradual ownership of over a term suitable to you.
Purchase a vehicle: Islamic vehicle financing comes with fixed repayments that allow you peace of mind and the contract is not impacted by movements in interest rate.
Transact, Save or Invest: You can transact, save or invest in a compliant manner and still enjoy all the benefits that are available through conventional banking.
Amman says there are clear benefits for using Islamic financial services and as consumers become more aware, we will see even greater take up of such Islamic solutions.