Al Baraka Bank To Allocate DZD 80 Million Loans To LPP Subscribers

All the conditions are provided for citizens to benefit from interest-free financing to pay the value of the Public Promotional Housing (LPP), Al-Baraka Bank’s Director of Consumption Marketing, Said Karim, told Echorouk.

“These conditions will be ready from March, and only DZD 20 million of the value of housing will be paid, and the bank will finance the rest of the amount, which is equivalent to DZD 80 million”.

“Islamic financing of public housing will be launched next March. The bank will finance the housing with  DZD 80 million for each Algerian who earns a salary of 5 million centimes. The salary of the citizen and his wife can be combined, while the payment will be realized during 20 years at a profit margin of 7%”.

The value of mortgages or loans that are launched by Al Baraka Bank in 2017 reached DZD 20 billion, which are interest-free loans and are based on Islamic Shari’a compliant profit margins. This involves the financing of real estate and used residences and the rehabilitation and expansion of housing, like building villas and renovation of old housing, and other offers, which are widely sought by customers who are rushing to Halal and Sharia-compliant banking services for fear of usury interest through banks.

A number of public banks in Algeria are preparing to launch Islamic services in line with those adopted by Islamic banks. This is due to the large public demand and other banks are preparing to launch Islamic checks and Halal services on the stock exchange in response to the widespread medical treatment by citizens and institutions.