After five years of laying down the groundwork, the National Bank of Commerce (NBC) has finally started giving out loans through its Islamic Banking Window, it was announced.
The bank officially started issuing Shariah-complaint loans — under its five-year old Islamic Banking Window — six months ago, Business Development Manager, Mr Eddy Mhina said at the weekend.
“So far, we have issued loans to the tune of 1bn/- under Shariah Banking,” Mr Mhina told journalists on sidelines of an Iftar that the bank hosted for its Islamic banking customers at the weekend. Shariah banking is a system of banking that is consistent with the principles of Islamic law.
In practice, it prohibits the payment or acceptance of interest fees for the lending and acceptance of money. It also prohibits Muslims from investing in businesses that provide goods or services that are considered contrary to the Islamic principles.
Islam prohibits the charging of interest; there should be no gambling (speculation) and no investments in prohibited industries.
NBC launched the product in April 2010 but during all the past five years, it has only been issuing cheques and receiving deposits.
Acting Mufti Abubakar Zuberi who was among the invited guests at the Iftar thanked the bank for the initiative and called upon the Muslims community to make use of the product.
He said the Muslims Council was open to help anyone on issues pertaining to religion and those that have national interest.
Originally published on DailyNews Tanzania