Bank of Maldives (BML), on Thursday, announced an increase to BML Islamic’s personal financing limit.
Commenting regarding the positive changes – BML said that customers can now get unsecured financing for personal needs up to MVR 1.2 million. The financing period is up to five years at a rate of 15 percent per annum. Previously, the limit was set at MVR 300.000.
However, the limit will be decided by the bank in consideration of the customer’s salary and other means of income. To be eligible, customers must have routed their income for the past 12 months to a BML account.
The facility provides financing for cash, purchase of goods, finance of service, and construction or renovation of a property. Cash receipt services are provided under the facility in accordance with the prominent Islamic banking principle; Tawarruq (Commodity Murahaba). Tawarruq is the principle of purchasing a commodity from a seller on credit at a higher price.
Cash received by customers through this facility can be paid back in monthly installments. Early payment makes the customers eligible for discounts under the corresponding policies of the bank.