Algeria: “Baraka Bank Set To Launch Consumer Loans Without Usury In September 2016”

Marketing and Consumer Finance Director, at the level of the Baraka Bank in Algiers, Mr Said Karim told “Echorouk” that 1,400 Algerian citizens have been allotted by the above-mentioned Bank a loan of a financial value equivalent to 130 million centimes (DA), to finance the acquisition of the locally manufactured ”Symbol” car, without any interest rates, since the launch of this loan formula four months ago.

 Our interlocutor said that the Baraka Bank had received up to now a 3,000 applications files, 1,600 of which are still being processed and will be answered soon, adding that the release of the second part of the interest-free consumer loan, to coincide with the next Social return in the month of September 2016, will be geared to allowing Algerian citizens from all walks of life to purchase home furniture and equipment such as household electrical appliances in addition to building materials, without usurious benefits from the relevant Bank.

Mr Said Karim further indicated that the launching process of this interest-free consumer loan formula at the Baraka Bank lasted for two months, a period that had been used to inform the various agencies and to build the organizational structure and to pinpoint the Algerians car financing methods in order to satisfy the majority of customers vying for this Charia-based banking formula.

It should be noted in this respect that Islamic finance prohibiting interest rates, has developed very rapidly over the past decade. On the international scene, all studies show an annual growth of over 10% during the last decade.

The number of Islamic financial institutions worldwide has risen from one in 1975 to over 300 today in more than 80 countries. 

The stock of Islamic finance in the world has reached more than 1,000 billion dollars in 2010. Bahrain is the first country to host Islamic institutions with 34 banks. 

The financial potential of these banks is 450 billion dollars, not including Iran. Until 2006, there was little talk of Islamic banking in the Maghreb region, except through the Best Bank in Tunisia and Baraka Bank in Algeria. Since then, manifold measures have been taken to help develop this promising sector of activity.