Business

Published: Monday November 23, 2009 MYT 12:40:00 PM

OCBC's new home financing package


KUALA LUMPUR: OCBC Al-Amin Bank Bhd has introduced a new home financing package based on the Shariah-compliant principle of Musharakah Mutanaqisah or diminishing partnership.

Its director and chief executive officer Syed Abdull Aziz Syed Kechik said OCBC Al-Amin Manarat Home-i was designed to suit the standards widely implemented in the local and global Islamic banking market.

"With the growing interest in and demand for Islamic banking products and services in Malaysia, one of the key principles being explored and applied globally is Musharakah Mutanaqisah, which is a partnership between the bank and the customer in accordance with Shariah laws," he said in a statement on Monday.

The share of the bank will gradually diminish until the ownership of the equity is ultimately transferred to the customer.

"We are confident OCBC Al-Amin Manarat Home-i will bring significant benefit to customers as it has no compounding of monthly profit, no processing fee and lower stamp duty," Syed Abdull Aziz said. - Bernama

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