Islamic banks to continue providing affordable home financing

Bank Islam group reported a PBZT of RM367.8mil for the six months ended June 30, 2.3% over the previous corresponding period, owing to growth in business activities.

KUALA LUMPUR: Malaysia’s Islamic banking institutions will continue to provide home financing facilities to eligible customers through schemes, said the Association of Islamic Banking Institutions Malaysia (AIBIM).

“A total of RM14.25bil was approved by Islamic banks for purchases of residential properties as at May 2017.

“This represents 37.3% of the total Islamic financing of RM38.2bil,” said AIBIM President, Datuk Mohd Redza Shah Abdul Wahid in a statement today.

He said Islamic banking institutions also offered various home financing products to cater to different needs of specific market segments, such as civil servants, rural and urban lower income groups, as well as young urban adults.

The products offered were based on various shariah contracts, namely Tawarruq, Musyarakah Mutanaqisah and Murabahah.

Mohd Redza said the financing guidelines were in place to protect the interest of home purchasers by ensuring they had the capacity to honour the financial obligation.

“It is to ensure customers do not fall into financial hardship in future,” he added. - Bernama