Gulf African Bank (GAB) has launched the region’s first interest free credit card that will adhere fully to Islamic principles of ﬁnancing.
The GAB Awwal credit card can only be used to purchase halal goods and services, and will give customers the ability to adjust credit limit by up to Sh2 million.
GAB managing director Abadalla Abdulkhalik said the card is in line with the bank’s commitment to provide new and innovative products that focus on the special needs of the customers with competitive advantages.
“This a card bears numerous unique features, such as no interest, fair pricing, no compounded fees and safety measure protection for users using 3D security features,” said Mr Abdulkhalik.
The firm says the card can be used worldwide at all visa accepted ATM’s points, at all points of sale and online shopping platforms.
The lender’s Shariah Supervisory Board Member Prof Mohammed Badamana said that a fixed fee will be charged to customers for various services such as maintenance of the account, continued usage of the card, along with benefits such as discounts with partner institutions.
The card will not be charged on any floating percentage fee that is dependent on the outstanding balance.
“The entire fee structure is based on a fixed fee with the banks discretion to reduce the fee unlike the conventional cards where the fee is a percentage of the outstanding amount,” he said.
Prof Badamana said the bank will do ethical screening of various institutions and will block purchase of goods such as alcohol and betting services, adding that Gulf Bank will donate late fees.
“If a customer fails to pay a minimum amount by due date a late charge will be levied against them. This payment will not be part of the banks income rather it will be donated to the GAB Foundation that supports various social empowerments.”