Norwegian bank tests 'Islamic loan' concept

The Local (NO) ^ | 1/20/17

[markomalley]

Norwegian bank Storebrand is offering new ‘halal loans’ based on Islamic principles.

The bank recently created a website promoting ‘ethical loans’ for home financing without interest. 

 

The bank writes that it is testing the idea of interest-free loans in part to appeal to Muslim home buyers who may not want to accept a traditional loan because of their faith. Islam prohibits charging interest or fees on financial loans. 

 

“We wanted to find out if there could be another way to enter a housing market with rising prices. The product could appeal to young people, new graduates or people who can not accept normal housing loans because of religious concerns,” the bank writes on a website that was set up to gauge interest in the idea. 

 

Within a week, around 300 people contacted the bank to express interest in the loans. 

 

“Storebrand is now currently evaluating the market potential for such a loan and considering what the product might look like. We have also been approached by financial advisers in the UK and Malaysia who want to help us to put together this type of loan,” the bank’s communication manager, Bjorn Erik Sættem, told Vårt Land. 

Although the bank says it is still merely testing the idea, its website states that instead of paying interest on a home loan the home buyers would pay rent on the property until they’ve paid in enough to achieve ownership. 

 

Sættem said that the bank has received “a handful” of negative reactions to what has been dubbed the ‘halal loan’, including some customers who have cut their ties with the bank. 

[markomalley]

I wonder how long it will be until Norway deposes their Royal Family and renames itself the "Islamic Republic of Norway"?

[Gaffer]

So. In addition to sacrificing its women to the barbarity of Islam, parts of Norway want to finance it, interest free. How accommodating.

[rmichaelj]

It’s just marketing, they are still charging interest.

[mewzilla]

Ditto for the UK.

[mewzilla]

And when that little detail finally becomes apparent, Norway will find out the hard way that appeasement does not work.

[rmichaelj]

Instead of holding the mortgage, the bank holds the title until you’ve “paid enough”.

[rmichaelj]

Yes, the “evictions” may get———interesting.

[kingu]

Wait, wait... They’ve repackaged rent to own where only a small percent of monthly rent goes to paying for the house as somehow being an ‘interest free loan’?

Wow, go Norwegians! What a way to screw young people!

[rstrahan]

Land sale contract, where title is not transferred until the note is paid off. Bank can disguise it as ‘rent’ making it easy to evict, but it is just semantics.

[jdege]

Apparently, the usual process is that instead of loaning the money so the buyer can purchase the property, the bank buys the property then sells it on an installment plan.

http://halalinc.com/What_is_Murabaha.shtml

[moovova]

What a clever way to fool the omnipotent, all-knowing, all-seeing Allah.

Alahu akbar!

[I want the USA back]

Willingly giving in to the hordes of muzzies. A big mistake. I predict that one or more of the Scandinavian countries will be giving up the cross in its flag within 5 years.

[oblomov]

So what happens if house prices (Allah forfend) go down?

[metmom]

And meanwhile non-islamists are screwed.

[Bigg Red]

:)

[rjsimmon]

Islam prohibits charging interest or fees on financial loans.

The onus is on the lender. According to Islam, no Moslem can CHARGE interest. It says nothing about PAYING interest. Lots of Moslem's own cars with which they took out loans. Same with houses. The Moslem invaders simply want more entities to bend to Sharia.

[sig226]

I wonder if Norway has a tax deduction for mortgage interest. It would be funny to implement that here. :)

[zeugma]

Interesting concept. You pay “rent” until you own it. I wonder how they figure equity. It could be really funny. Sorry Mohammend Goat-sucker, but you have only been ‘renting’ for 20 years. If you want to move, fine, but the house is ours. You’re just a tennant for 10 more years.

[markomalley]

Interesting concept. You pay “rent” until you own it. I wonder how they figure equity. It could be really funny. Sorry Mohammend Goat-sucker, but you have only been ‘renting’ for 20 years. If you want to move, fine, but the house is ours. You’re just a tennant for 10 more years.

When I lived in Turkey (>25 years ago), loans were set up so that you had a fixed charge that was assigned rather than interest. So, for example, if you borrowed $1,000, your contract would say that you had to pay back $1,200...rather than charging an interest rate. Works out to be about the same thing if the loan is paid back on time (sucks though if a person wants to pay it off early).

I'm not opposed to the concept in of itself (the OT has some nasty things to say about usury). But I hate that banks and societies do things in order to kiss the behinds of Saracens.