National Australia Bank To Offer Sharia Loans…

With thanks to Darrin,  Elois & Rossco

Whatever it takes to make Australia Islamic:

ONE of Australia’s major banks is planning to introduce “Muslim-friendly” loans that do not charge interest to comply with sharia law.

Instead, the National Australia Bank will structure an Islam-approved line of finance to make money from alternative methods.

These include profit-sharing on the transaction, joint-ventures or leasing-type arrangements.

For example, to get round the Islamic ban on usury – or unfair lending – a Muslim mortgage often works by the bank buying the property, then selling it to the customer at a profit. The customer then repays the sum in instalments.

In this way the profit margin is built in from the start. It also makes the loan immune from future interest rate rises.

NAB said the loans would have to be cleared by a Sharia Advisory Board to ensure they met strict criteria.

“We are dipping our toe in the water and thought we may be able to offer this product in high-density Muslim areas,” said Richard Peters, head of community finance & development at NAB.

“We suspect there is demand out there but we don’t know how big it is, so we will trial a few products first.”

NAB will pump $15m from its not-for-profit finance division into the program, which will distribute funds through various community finance schemes around the country.

Interest-free loans of up to $1000 will be available, which are intended to help finance household items such as washing machines and fridges.

“It’s a small step but we are trying to raise awareness about the need for Islamic finance,” Mr Peters said.

The loans would be available to non-Muslims as well.

18 thoughts on “National Australia Bank To Offer Sharia Loans…”

  1. On the positive side in the event of social unrest the country could freeze their assets. This service will be offered to non Muslims so don’t worry the bank will be able to shaft everyone as per normal.

  2. WHAT ARE WE THINKING OF ? This is just another example of nothing western being good enough for Arabs – except our countries blood on the way to ultimate submission !! If our government allows this sort of irreversable financial influence from rogue middle eastern money to circulate in Australia, at the instigation of the likes of Keysar Trad and his band of Sharia supporters, then our children are all doomed to Sharia law with all it’s desperate repercussions, as the reluctant British population have found out the hard way ! Why oh why dont they just go home ? instead of trying constantly to instil their despicable Islamic doctrine systems upon our beautiful country ! This is not lebanon yet ! thank god ! Norris Miles

  3. I’m not clear on what is so wrong with an idea that prohibits usury. What if it’s a good idea? Do you keep on with a bad one just because Muslims thought of the good one? If it’s a bad idea, don’t take one of the loans.

  4. That’s why:

    Shariah Finance: Jihad with money

    Obama, Zakat and Islamic Charities

    Under Shariah law there are several approved destinations for zakat.

    The most authoritative source for such information is a book which is available on Amazon called “The Reliance of the Traveler, A Classic Manual of Islamic Sacred Law.” That book has a whole section devoted to the rules of zakat, including “THE EIGHT CATEGORIES OF RECIPIENTS.” On page 272, section h8.17, one category is labeled:


    The seventh category is those fighting for Allah, meaning people engaged in Islamic military operations for whom no salary has been allotted in the army roster (O: but who are volunteers for jihad without remuneration). They are given enough to suffice them for the operation, even if affluent; of weapons, mounts, clothing, and expenses (O: for the duration of the journey, round trip, and the time they spend there, even if prolonged. Though nothing has been mentioned here of the expense involved in supporting such people’s families during this period, it seems clear that they should also be given it).

    This passage, from this widely-used Shariah text seems to have been written expressly about zakat payments to charities which have funded Al Qaeda, HAMAS, Hezbollah and the Taliban. Note from the passage that such payments are meant specifically for irregular forces who are not part of any army roster, which describes terrorist/guerilla/insurgent groups exactly. Note that they are meant for “Islamic” military operations and not secular groups (i.e. HAMAS and not the Popular Front for the Liberation of Palestine-General Command). Note that such payments are made even if the recipient is affluent…like Osama Bin Laden. And, finally, the families of fighters are to be taken care of, such as payments by Saddam Hussein and Saudi princes to families of Islamikaze bombers in Gaza and the West Bank.

    All too often, the destinations of zakat payments are to Jihadists, simply because Shariah mandates it.

    Want more? Here’s more:


    Muslim Brotherhood spiritual leader Yusuf al-Qaradawi decrees, “Declaring holy war . . . is an Islamic duty, and fighting . . . is the Way of Allah for which Zakat must be spent.” In his 1999 publication, Fiqh az-Zakat, al-Qaradawi adds, “The most important form of jihad today is serious, purposefully organized work to rebuild Islamic society and state and to implement the Islamic way of life in the political, cultural and economic domains. This is certainly most deserving of Zakat.” 44 And as previously demonstrated time and again, Muslim jihadist-terror organizations are indeed prominent zakat recipients.

    The use of charities to fund jihad, however, is not limited to radical Sunnis. On Jerusalem Day, 5 October 2007, Al-Manar TV broadcasted Hezbollah leader Hassan Nasrallah’s cantankerous speech giving religious, moral, and political justification in support of “the armed Palestinian resistance” and calling for financial support to the Palestinian terrorist organizations. Nasrallah “gave Khomeini’s fatwa [45] . . . allowing charity funds . . . and the tax of 1/5 (khums)[46] to be transferred to the Palestinian terrorist organizations . . . to pay for their campaign.”47

    The definition of zakat in The Encyclopedia of Islam includes in “category 7” of eligible recipients “volunteers engaged in jihad,” for whom the zakat covers “living expenses and the expenses of their military service (animals, weapons).” 48

    Millard Burr and Robert Collins’s compelling study Alms for Jihad documents that when zakat, which is obligatory to all Muslims, is given “in the path of Allah,” it is given to fund jihad. There are seven broad categories of eligible recipients: the poor, converts, wayfarers, those in bondage or in debt, those committed to Allah for the spread and triumph of Islam, newcomers whose faith is weak, and new converts to Islam “whose hearts have been [recently] reconciled [to truth].” Moreover, zakat may be used to support those who administer it.49

  5. I must say that I lean towards your side on this one Sheik. I recently read a Herald article about the explosion of the so-called “Sharia-finance” throughout the world, and that Muslim-backed finance organisations have been growing at a double-digit rate right throughout the global crisis, as they continue buying-out many Western institutions and products.

    This concerns me a little, as I can see the West ending up financially beholden to the Muslim world due to the continued greed-based financial collapse which i think is far from over yet. I think this NAB ides is simply the first “overt” product on offer. Citibank and HSBC already have large “Shariah Finance” business segments, which are the fastest growing segment in each organisation, according to the Herald article I read.

    The years ahead will be interesting indeed, but I beleive that our Lord Jesus Christ, Messiah to the Jews and Saviour of the World, will return before too much longer and resolve all these things anyway, so my concerns are not too strong.

    But time is short, and we need to ensure that we are living the lives we have been called to live.

    God bless you all,

    The Rev

  6. Further more, Australia had fixed interest rates for various financial products until the Credit Act was changed in 1981 to allow contracts with variable rates. There is nothing ethical about Shari’a finance – it is simply a tool of the Islamic propagandists – do not be fooled – once you let the camel’s nose into the tent, before you know it you’ll have the whole camel in the tent.

  7. There are a lot of peace loving muslims living in this beautiful country of ours, Australia who do not care about radicalism. Sharia finance is for whoever wants to use it . Islam in Australia is often associated with Arabs but there are a lot of muslims from other countries living here. Religion and culture differ. For example, there are Christian Arabs who culturally are same as other Arabs.


  8. Rev sez:

    “…the West ending up financially beholden to the Muslim world due to the continued greed-based financial collapse which i think is far from over yet.”

    Greed based? Not. That came later.

    At least not in such a way that the banks -or more likely for people of your belief-system: “da Jooozz” – are to blame. Until socialist engineering came along, our banks were healthy. Charging interest is not usury, it is the fundamental essence of the worlds financial markets, which have served us well for centuries.

    On the contrary, this financial crisis was socialist engineering at its very worst. Dating back to Peanut Khadr and the equally awful Clinton years, sub-prime-lending was a socialist cesspool forced upon us with the idea that it would enable welfare recipients and those who could otherwise never afford it into houses they could never pay off.

    Thus we all got screwed. No good deed goes unpunished.

    Socialism has failed wherever it has been tried. We currently live in a society where big government creates the illusion that it will take care of all your needs, with the result that ever increasing numbers of people have abdicated all responsibility to manage their own affairs and rely on welfare.

    A vicious cycle which will impoverish us all.


    People should write to the NAB and complain – threaten to close accounts etc. We should not be allowing islamic finance into our financial systems.

  10. I might have missed something, but my impression was that the loans and institutions were still owned by the NAB and that the change was the removal of interest and replacement with the bank buying the asset and selling it to a person at a higher price. Certainly, if this is a more effective system it would naturally grow and replace more of the interest system, but none of that necessarily means the banks are now owned by muslims does it?

    I would also have thought that the rule of law means that banks are held to the same standards as anyone else. Lending money for Jihad, even if part of Sharia law would not be legal in our country. Is there any reason why these loans can’t be policed in exactly the same way any other loans could be?

  11. A must read on sharia compliant finance,its a trojan horse working against the West’s interest
    60min vid with downloadable presentation material at
    under recent news/sharia compliant finance disclosure seminar for online viewing
    should make all politicians and banks aware of this instead of the sugar coated version sprouted by cris bowen fed assist treasurer

  12. ??Whats the big deal? The bank still makes money from the loan, those who want to borrow the interest way can still do that, and those who want to borrow the sharia compliant way now have the option! There are hundreds of 000000 of muslims who are unnable to purchase houses because it is against there religion to take a intrest based loan! This will give them the opportunity to buy a home! This is just like when a christian or a jew opens a pizza shop in a muslim populated area, they turn to halal food, because thats all the muslims will eat! At the end of the day, its just business, and the banks have everything to gain, and nothing to lose! Radical ideas like the ones mentioned above are taken out of context by immature uneducated bafoons who have a hate for everything in the world! Lighten up! Its just a new product! I can think of hundres of whole communities who are waiting for this loan to come out! BRING IT PLEEEEEEEEEEEEASE!!!!

  13. I agree with Robert, excellent view and great points. The NAB is certainly going to be the new leader in the financial sector once the formalities are complete! I cant wait to buy a house.

  14. Robert – do YOUR homework and then understand the implications!!!!


    What precisely is a “Bafoon”? The correct spelling for the word you wanted to use (a good description of yourself actually) is “Buffoon”. Mohammed’s response is typically muslim – the view is only excellent because it agrees with its own. As for excellent points??? There are none in Robers argument. The NAB will ultimately loose from this decision – as for Mohammed buying a house – I suspect that those of us who are working will be paying the interest for this muslim. I am also curious as to identity of the hundreds of communities who are waiting for this sharia product!!!!! Care to enlighten us Bobby.

  15. Robert,
    Hundreds of 000000 = 0!!! And your point is ….?????
    The lack of sharia financing has never prevented muzz scum from buying property. Now there are a couple of interesting things in your little diatribe. There are several simple grammatical errors which suggest that you wrote your little masterpiece (NOT) in a bad huff. Statistically speaking, the only readers who are likely to get upset over the content of this blog are muslims.

  16. Sorry Robert and Mohommed, if you disagree on this blog they start by insulting you then move on to calling you a muslim. Kaw is quite the profiler. It’s gotten to the point where he has threatened to track down where I live. All for the greater good no doubt.

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