For Muslim buyers forbidden by Islamic Law to enter into interest-based transactions, Wesbank will be introducing a new vehicle finance product at the end of May.

For Muslim buyers forbidden by Islamic Law to enter into interest-based transactions, Wesbank will be introducing a new vehicle finance product at the end of May.

According to Wesbank, it has spent more than two years researching and consulting with various scholars to develop a finance agreement that meets the stringent Islamic laws.

Chris de Kock, general manager of Wesbank, said: "We were approached by customers and dealers to develop an Islamic finance product. I truly believe that this product has met the demands of Islam and South Africa's judicial system and will create a great demand not only for the Muslim community but also for others who wish to move away from interest-based banking."

According to Madelain Roscher, a spokesperson for Wesbank, the repayments would factor in current and future interest rates as well as vehicle insurance. In the past, due to an inability to obtain finance, individuals would have to group together to pay cash for a vehicle. This product will provide individuals with the financing they need to enter into transactions on their own.

Wesbank said its new product was regarded as being the most conservative Islamic financing agreement in the Western world, according to both local and international Islamic scholars.

Worldwide there is a growing demand for finance and investment products that conform to Islamic law. Ebrahim Patel has been appointed as the chief executive of Wesbank's Islamic division.

Original article from Car