Bank in Norway willing to forego profits to entice Muslims into home loans
Under the guidelines of Sharia Law, Muslims are to refrain from entering into any financial contracts that involve the use of interest on either side of the agreement. Â In theory this means that any loans made by or to someone following the beliefs of orthodox Islam should result in a zero sum game, but in practice the borrower often makes a donation under the guise of ‘alms’ as a way to skirt this religious edict.
Yet when a non-Muslim agency like a bank deals with someone following Sharia Law, the details can become quite confusing. Â And perhaps as a way to bypass this potential barrier for business, a bank in Norway has now announced they are experimenting with offering interest free loans, or ‘halal loans’, to Muslims wanting to borrow money towards the purchasing of a home.
With Europe becoming increasingly multicultural, many established institutions are being forced to change their routines to cater to all tastes. A Norwegian bank started to offer its clientele âhalal loans’ based on Islamic principles.
AÂ websiteÂ promoting so-called interest-free ‘ethical loans’ forÂ home buyers was recently launched byÂ Norwegian Storebrand bank. By the bank’s own admission, it is testing the idea ofÂ interest free loans toÂ specifically appeal toÂ MuslimÂ home buyers, who would not accept a traditional interest-based loan sinceÂ Islam prohibits charging interest onÂ loans. – Sputnik News
It is not completely surprising that one or more banks would begin offering interest free mortgages, especially with the advent of negative interest rates proliferating the European landscape. Â And in fact there are several instances of banks actually paying some homeowners to keep their outstanding mortgages so that they can spend their extra money to try to boost economic growth.
It is yet to be determined the legality of a bank offering benefits specifically to a unique religion or culture while at the same time charging interest to the majority of their other customers, especially since most financial institutions have regulations barring them from unfair business practices based on age, sex, race, etc…. Â But what is significant is that the West is waking up to the financial power that is held within the Nation of Islam, and the realization that their own people are now so broke that they have little that the banking cartel can rely upon to keep fueling their financial machines.
Kenneth Schortgen JrÂ isÂ a writer for The Daily Economist, Secretsofthefed.com,Â Roguemoney.net, and Viral Liberty, and hostsÂ the popular youtube podcast on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.