How to get a Sharia compliant commercial loan

As Enness works with an ever-growing global client base, providing finance that is appropriate across different cultures is an important consideration. Finding our clients the product they need doesn’t just mean finding the best rate—it’s also important to ensure our clients receive a product that aligns with their personal and religious beliefs.

This is a particularly relevant concern for our Islamic customer base, who require Sharia compliant finance for their transactions. For those who are unsure exactly what Sharia compliant finance is, the following is a brief overview. A central belief in Islamic finance is that money has no intrinsic value and it is not permitted to make a profit by exchanging money; essentially, interest cannot be charged or paid on Islamic loans and bank accounts.

Naturally, this means that providing Sharia complaint finance requires a different structure. Fortunately, Enness has a wealth of experience in securing Sharia compliant finance. We have frequently funded projects via Sharia compliant borrowing vehicles, and can confidently support you in securing a Sharia compliant commercial loan.

There are several methods of achieving a Sharia compliant loan. A lender may buy the asset and then lease it back to them. The bank might also purchase an asset for the client, and then sell it back to them for an agreed marked-up price. This is not as complicated for smaller, residential mortgages—however, we often deal with complicated commercial loans and know that it is still important for our Islamic customers to ensure their finances are Sharia compliant.

Enness is delighted to have a growing client base in the Middle East, which means that we have endeavoured to continue to nurture relationships with lenders who can provide Sharia compliant finance. For example, we have an excellent relationship with a lender who operates according to Islamic principles—and this is increasingly popular not just with our Muslim customers, but clients across faiths seeking ethical banking. Contact us today if you need a Sharia compliant commercial loan.

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