Get a quote for credit cards, pensions, other investmentsSite Map

Islamic Credit Cards

At present there is no Islamic finance institute which provides an 'Islamic Credit Card' in the UK. (Although, that is not to say that thee will not be one in the future).

What is an Islamic Credit Card?

One of the latest banking products offered by Islamic institutions, is the Islamic credit card. Using the principles of Al Bai Bithaman Ajil (deferred payment sale), the bank issues an interest-free and penalty free credit card. As goods are purchased using this credit card, you're the bank will render the transaction on your behalf and simultaneously sell it back to the customer. This credit is payable over a deferred period through installments within a certain time frame.

Features on Islamic Credit Card

The concept of 'Al-Bai' Bithaman Ajil'

Al-Bai' Bithaman AjilIn modern Islamic banking, the term refers to a buying and selling transaction between the bank (or financial institution) and the customer, whereby the former buys a property (or an asset, e.g. a house) at the prevailing market price and sells it to the customer at a mark-up price where payments are made by installments over a period of time agreed upon by both parties. The profit earned by the bank is legitimate from the Shari'ah point of view since the transaction is based on a sale contract rather than a loan contract. Any predetermined profit arising from the loan is prohibited in Islam as it amounts to Riba.

The authaurity on Islamic Credit Cards

Prof. Dr. Mohd. Ma'sum Billah has written [1]Islamic Credit Card in Practice .  As an authority on the conecept of Isalmic Credit cards.  He is Professor of Islamic Financial Regulations, Assoc. Professor of Law (Insurance, Takaful, Islamic Banking, Finance & E-Commerce), Faculty of Economics and Management Sciences, International Islamic University Malaysia He is also an Adviser and Consultant to several Companies and Institutions.

(Disclaimer: What we have given here is general information on the structure and the application process for the product. Procedures, requirements and structuring may vary from one financial institution to another and from country to country, depending on market and central bank regulations. Our intent is to provide customers information and not to act as a financial adviser to our visitors, or as brokers for financial institutions.)



Islamic Mortgages Info

If you have a question on any aspect of Islamic financial services available in the UK please tell us - click here to receive further information

Copyright © 2011 Islamic Please read our Terms and Conditions
The entire product range offered on this website is Shariah compliant. However, from time to time we will promote relevant none Halal products where no Islamic / Halal alternatives exist. Your home is at risk if you do not keep up monthly payments due under an Islamic / Halal mortgage agreement (your lease and / or diminishing ownership agreement).