Al Baraka Bank: Halal Loans To Finance 80% Of “LPP” Type Housing Units

On Sunday, on the sidelines of the opening of a workshop on Islamic banking at the Palace of Exhibitions on the eastern outskirts of Algiers, the director of Marketing and Consumer finance at Al Baraka Bank, Mr. Said Karim, revealed that the file of the financing of the public housing units through halal loans by Al Baraka Bank is now quite ready.

The relevant bank will pay 80% of the value of the new housing unit. Payment and installment will be defined according to the customer’s salary. If he is married, the applicant will participate in the staggered payment together with his wife, he indicated.

He added that Al Baraka Bank will start financing soon LPP housing through shariaa-based loans, which is a new banking formula that is expected to come into force service in the course of the year 2018. 

He pointed out that determining the value of the monthly installments to be paid by the customer will be according to his salary and the salary of his wife, while the bank’s funding will cover 80 percent of the value of the new housing unit of the LPP  formula.

In terms of consumer loan portfolios, Mr. Said Karim said that 12 thousand products were financed through non-interest loans during 2017, worth 1,400 billion centimes (DA), including 1,000 billion centimes (DA) notably for the financing of vehicles recently assembled in Algeria-based factories, adding that their number reached 10 thousand.

He also pointed to furniture, electrical appliances and other products listed in the list of goods for the consumer loan list approved by the government during 2016, adding that the same value of loans is expected to be renewed during 2018.

“We are looking forward to expanding our business network in 2018 by opening new agencies in Staoueli, in Msila and another agency in the South of Algeria, as well as launching the MasterCard International Credit Card, and the Visa Card in order to live up to the requirements of our customers”, he further underlined.