The Abu Dhabi Islamic Bank (ADIB) plans to offer a Shari’ah compliant payment card. ADIB is introducing this product to satisfy the needs of the growing segments of the market. The product will give the customer the freedom to choose to pay the outstanding balance on the credit card in installments.
According to Deputy Chief Executive Officer of ADIB, Mohammed Al-Qubaisi, the current Credit Cards offered by the Islamic Institutions are in fact "Charge Cards", whereby the customers have to settle the full outstanding balance on their card monthly statement. A credit card in the true sense is when the Bank allows "credit" to the customer where a balance is carried forward and repaid in installments over future months.
"Interest is forbidden in Islam, therefore, there was a compelling need for a product that would be in compliance with the Islamic Laws and at the same time offer the facility of a "True Credit Card" and ADIB has been working on this for some time now" explained Al-Qubaisi. — (menareport.com)
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