Bank Nizwa, Oman's first Islamic bank, launched its Islamic auto finance product on Saturday. The new product, according to a press release, facilitates the purchase of a car of choice, and the customer pays instalments on deferred payment basis. The product is based on the Islamic principles of Murabaha.
With extremely competitive profit rates on both new and used cars, the bank promises customers less processing time and simple documentation procedures. To avail of this facility, salary transfer is not mandatory. The bank is offering auto finance on post-dated cheques, and the processing fees has been waived for a limited period.
Speaking on the product, Tariq al Farsi, general manager, retail and private banking, Bank Nizwa said, “Our customers are showing interest in our Sharia-compliant products and services. Our auto-finance product offers customers the opportunity to choose a car to suit their lifestyles, and we at Bank Nizwa endeavour to exceed their expectations.” Within its retail-finance suite, Bank Nizwa said it plans to expand services into other areas including home finance