KUALA LUMPUR: OCBC Al-Amin Bank Bhd has introduced a new home financing package based on the syariah-compliant principle of musharakah mutanaqisah or diminishing partnership.
OCBC Al-Amin director and chief executive officer Syed Abdull Aziz Syed Kechik says OCBC Al-Amin Manarat Home-i was designed to suit the standards widely implemented in the local and global Islamic banking markets.
“With the growing interest in and demand for Islamic banking products and services in the country, one of the key principles being explored and applied globally today is musharakah mutanaqisah, which is a partnership between the bank and the customer in accordance with syariah laws. The share of the bank will gradually diminish until the ownership of the equity is ultimately transferred to the customer.”
Manarat is an Arabic word that means “light house” or the place from which light shines. Historically, it has been used to refer to the delivery of speeches, and as a way to enlighten cities with wisdom and knowledge.
According to Syed Abdull Aziz, the OCBC Al-Amin Manarat Home-i has no compounding of monthly profit, no processing fee and lower stamp duty.