Bahrain Islamic Bank launches its new personal financing product "Tas'heel"

The product is offered by Sharia'a compliant Morabaha and ensures full flexibility and with simple procedures.

The Bank said the new "Tas'heel" scheme offer has been designed in compliance with the rules and principles of Sharia'a. It is also considered as the easiest means of obtaining cash finance that complies with Sharia'a and available in all the Bank's branches throughout Bahrain.

This service is offered through the Bank's total commitment to provide the best banking services to its customers by enabling them to meet their daily financial requirements without conflicting with the guidelines of Islamic Sharia'a.

Commenting on the new product offering, Mr. Rashid Alolaiwi, BIsB Senior Manager Retail Banking said:

"Providing this service has been the result of a detailed study of the market requirements on the one hand and the needs of the esteemed customers on the other and in full compliance with the principles of Islamic Sharia'a. It allows customers the benefit from such Islamic finance with a repayment period of seven years and for up to BD100,000."

He added: "Methods of payment of this new product vary according to the need for finance. Customers may take advantage of this finance to meet their personal requirements such as the repayment of debts, purchase of building materials, education, medical treatment, marriage and such other personal needs."

On the similarity between this product and Tawaruq transactions offered by some Islamic banks, Alolaiwi said although both products provide the customers with cash facilities, the "Tas'heel" product offered by Bahrain Islamic Bank is totally different in its procedures and systems from any other Islamic solution that is available. This makes the "Tas'heel" product creative not only in its procedures but also in the principles of Islamic Sharia'a upon which this product is based.

Terms of this product allow a maximum finance period of seven years for Bahrainis and five years for non-Bahrainis. The minimum finance amount is BD1,000 while the maximum amount is BD100,000.

Alolaiwi said Bahrain Islamic Bank makes every possible effort to meet the ambitions of its customers by speeding up the processing of their applications to enable them to meet their essential requirements as soon a possible. Therefore, we have made this service available from today at all 12 branches of the Bank throughout the Kingdom.

Commenting on "Tas'heel" personal finance features, Alolaiwi said: "Our product has many advantages that include such soft terms as a minimum employment period of just 4 months, a net monthly salary of no less than BD200 and a minimum age of 21. If such conditions are fulfilled, the Bank will be happy to offer this Morabaha backed personal finance."

"To make use of this offer, a customer does not need to provide a guarantor. Further, to ensure convenience for our customers, we have insured this Morabaha though an Islamic insurance company so that a customer will be exempted from payment of the outstanding balance in case of natural death." Mr. Alolaiwi added.

Commenting on how far customers could make use of this product when there are several other services provided by the Bank such as the Morabaha services for car finance, purchase of furniture and such other service, Alolaiwi said "Tas'heel" product is not intended to replace such services but it is designed to facilitate requirements of customers who are not subject to the Morabaha system."

In 2005 Bahrain Islamic Bank launched its "Ijara Muntahia Betamleek" Ijara property finance ended with ownership allowing customers to buy their dream home through finance of up to BD200,000 and a repayment period of 20 years.