Bank Islam consumer lending rising

BANK Islam Malaysia Bhd expects its consumer lending to grow by at least 10% in its current year ending June 30 (FY09) from 3.9% in FY08, driven by the innovative features it has incorporated in its products. Its projected growth is higher than the industry average for conventional consumer banking, which is expected to be between 2% and 3% this year, reports The Star.
Bank Islam is one of two full-fledged Islamic commercial banks in the country. The other is Bank Muamalat (M) Bhd.
"While we are concerned about the economic outlook and, hence, demand for financing, we believe that there is still enough to go around," consumer banking group head Khairul Kamarudin said in an interview published on April 6.
Bank Islam’s efforts in incorporating innovative features in its products, together with more aggressive marketing, would help it capture a wide customer base, he said. For example, its mortgage financing product, the Baiti Home Financing-i, allows customers to skip repayments every November and December, the report said.
Last year, Bank Islam also introduced a special mortgage financing scheme for individuals like fishermen and hawkers who would like to buy homes but do not have the relevant documents like payslips. The scheme is guaranteed by a RM50mil fund to be managed by government-owned Syarikat Jaminan Kredit Perumahan Bhd.