Sunday November 13, 2022
In an effort to enable customers to own their dream homes, Bank Nizwa, the leading Islamic bank in the Sultanate, has announced that it has made ethical, Shari’ah-compliant home finance more affordable. Bank Nizwa Property/Home Finance, based on the Shari’ah concept of Ijara, Murabaha, Forward Ijara and Diminishing Musharakah, offers quick and hassle-free solutions designed to help lighten one of the most demanding commitments. Through the service, customers will be able to finance lands or purchase a ready or under-construction property.
Locals and residents working in the public or private sectors who make a minimum monthly salary of OMR 400, in addition to self-employees are all eligible for Bank Nizwa’s Home Finance. Flexible payment options are available for up to 25 years. To avail of the service, customers who have not yet identified a house to buy can visit any Bank Nizwa branch and speak to a customer service representative who will calculate the amount they are eligible to receive. On the other hand, the bank will process an application if they have already found their ideal home and guide them through every step of buying a home. With Shari'ah principles in mind, Bank Nizwa is striving to assist customers in securing their dream homes.
“The salient feature of an Islamic home finance facility is that an ethical overlay is applied to it, whereby both finance funding and finance purpose have a moral requirement. Moreover, it provides highly competitive rates and is reasonable as well as sustainable since the transaction is asset-based,” said Arif Al Zaabi, Assistant General Manager – Retail Banking at Bank Nizwa. “Bank Nizwa provides Islamic banking solutions that have been vetted, accepted and maintained by the Shari’ah Supervisory Board to provide our customers with a wide range of benefits. We strive to pioneer global best practices and offer Islamic banking solutions that are suitable for all. Continually engaging with customers to better understand their needs has led to sustained improvements in the bank's services and product offerings,” he added.
The Ijara home purchase plan lets you finance your final purchase with a combination of rent and capital payments. As a result, your ownership share remains consistent throughout the life of the plan. The Murabaha is a financing arrangement in which Bank Nizwa buys the property and sells it to the customer with known cost and markup for both parties, and then the customer pays a monthly instalment. A Diminishing Musharaka agreement is a joint purchase agreement between the customer and Bank Nizwa. The customer pays off the provider's share each month, so their ownership share grows as the banks decrease. In Forward Ijarah, the Islamic bank pays for the construction whilst the customer begins making payments after completion.
The Home Finance service offered by Bank Nizwa will allow customers to realize their dreams. Bank Nizwa customers are offered hassle-free banking and a partner who can help them achieve their goals due to enhanced purchasing power and a refined taste for modern products and assets. Easy finance options and services will not only enable the Bank to meet its customers' socioeconomic needs but also maintain a high standard of customer service. Through segmented products, enhanced digital platforms and lucrative propositions, Bank Nizwa provides a range of products that not only offer significant benefits but also make the customer's life easier.