IslamicFinance.de

#Kenya’s first fully Shariah compliant bank Gulf African is banking on a Shariah compliant insurance premium financing facility. The regular Insurance Premium Financing (IPF) enables customers to cover costs of immediate insurance premiums while spreading repayment over an agreed period. This Shariah compliant IPF enables the lender to enter into an agreement with both the insurer and the insured. The bank pays the full insurance premium of the insured immediately while operating under the Tawarruq model. Gulf African Bank CEO Bdalla Abdulkhalik said this policy will act as security for the bank and customers will also enjoy effortless renewals as agreed upon. Gulf African Bank will also act as the billing and collecting agent.