High Street Account For Muslim Businesses

Posted on April 11, 2007

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Source: AWD Money Extra

Lloyds TSB has announced the launch of a high street Islamic business account. The account, which complies with Islamic law (Shariah), is available across the bank’s 2,000 branches, and will be open to the UK’s estimated 100,000 Muslim firms.

There are two separate accounts on offer. Businesses with a turnover of up to £2 million will be eligible for the Islamic Business Account, while businesses with a higher turnover will be eligible for the Islamic Corporate Account.

Last year, following research that showed three quarters of the UK’s Muslim population were interested in Islamic financial services, the bank launched a series of Shariah compliant products, including an Islamic current account, student account, mortgage and investment fund.

Islamic law states that businesses, as well as individuals, should not pay or receive interest.

The rules also say that individuals and businesses can only invest in certain companies, prohibiting dealings in industries such as gambling or alcohol. In order to ensure that the account is fully compliant with Islamic law, Lloyds TSB has consulted with its board of Islamic scholars.

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