i have heard that you have approved the wesbank islamic finance scheme.can i have the details emailed to me as to how the transaction actually works.the reason i ask is that – i initially heard that the scheme was still being tested and that now all the workings have been finally approved.
jazakallah
We have been in deliberations with Wesbank for a considerable time, and have finally come to an agreement of a contract that we have approved. However, from a systems perspective, Wesbank will only be using the contract we have approved from October 2005. At present their legal department need to approve our suggested changes. Once we receive a copy thereof, we will request them permission to share this copy with you.
In brief, the client will approach the car dealer. Once he chooses his vehicle, the bank will purchase the vehicle from the dealer, and rent it out to the client. The bank, as the owner, will insure the vehicle. Through the rentals the bank will recover its capital and profit. Thereafter at the end of the term the bank is at liberty, but not obliged, to hand over the vehicle to the client.
And Allah Ta’ala knows best.
Was Salaam
E. Vawda
for Daarul Iftaa
Checked and Approved: Mufti Ebrahim Desai