Muscat: Further bolstering its product line-up, Bank Sohar's Islamic banking Window — Sohar Islamic, has now introduced dedicated construction financing.
As with all Sohar Islamic financial products, the construction finance product is also fully compliant with Islamic Sharia law and provides a comprehensive Islamic finance solution for anyone looking to build a new residential property or purchase under construction property. This is a perfect complement to its existing Islamic home finance programme launched last year, which offers Sharia-compliant financing for ready real estate property.
Commenting on the Sharia-compliant construction finance solution, Mohammad Haris, AGM and head of Sohar Islamic said, "The housing finance product launched by Sohar Islamic last year was a huge success with our customers. Backed by its success, Sohar Islamic has now developed the dedicated Sohar Islamic construction finance product which is structured on the Islamic mode of Istisnaa and forward Ijara. It offers flexibility through which one can build a new house or can purchase the under construction residential property and get it completed according to Islamic principles. The introduction of this product is in line with Sohar Islamic continuous endeavors to introduce products which meet the needs of people of the Sultanate."
As with all other Sohar Islamic products, the application and approval process for construction finance is simple to apply and quick. In addition to offering competitive profit rates, the construction finance programme comes within a unique and flexible framework catering to the varied financing needs of customers with financing up to 80 per cent of the price within a flexible financing period reaching up to 25 years.
In addition, preferential profit rates are provided to customers for the first and second year along with the facility to takeover. If required, installment deferment options are also available for the convenience of the customer.
"It is matter of great privilege and pleasure for us at Sohar Islamic to add yet another product in its wide portfolio by launching Construction Finance product for retail banking customers. Having a house of his/her own choice, design and taste is the dream of every individual which can now be turned into reality through our Sohar Islamic Construction Finance product," said Mohammad Haris.
In addition to construction finance and Islamic home finance, Sohar Islamic has a comprehensive range of banking solutions that cover a wide array of retail and corporate financing needs.
These products follow the highest Sharia-compliant international banking standards. The financial solutions include auto finance, term deposits, savings accounts and current accounts for the bank's retail customers.
For its business clients, Sohar Islamic offers asset finance, working capital finance, trade finance, treasury and investment products.
To ensure that all products and services offered by Sohar Islamic adhere to the highest level of Sharia-compliance, they were specifically designed to meet certain key criteria — a complete segregation of funds; stand alone and independent branches, separate sales staff, a strong Sharia supervisory board and Sharia audit and compliance unit; committed management; the world's best Islamic banking software; and compliance with the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).