Islamic Banking

September 1, 2006

Lloyds TSB Islamic financial services expanding

Filed under: Islamic Banking News, UK

Lloyds TSB has opened its 17th Islamic banking centre at Bethnal Green that has been designed to provide financial services to the areas Muslim community.

The branch will offer customers financial products that comply with Islamic law, which forbids the payment or receipt of interest.

Paul Sherrin, head of Lloyds TSB Islamic financial services, said: "Bethnal Green is home to one of London’s strongest Muslim communities and by bringing Islamic banking to the area we hope to give our customers a real alternative to traditional banking."

The current account comes with no credit interest and there is no overdraft facility. However, a debit card is provided and there is no fee or minimum balance requirement.

There is also a home finance product, with which the bank buys the customers home outright – paying up to 90 per cent. The "owner" then pays rent on the property as well as regular repayments until the home is effectively re-purchased.

All Lloyds TSB Islamic financial services funds are held by the bank in accordance with Islamic laws.

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