Here’s what you need to know
-
How can a conventional bank offer Islamic banking services?
- Conventional banks can sell Shari’ah-compliant products because Islamic law does not require that the seller of the product be Muslim or that its other services also be Islamic. It does require that the product or service be in compliance with Shari’ah guidelines.
- Absa Islamic banking has not only developed Shari’ah-compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking independent Shari’ah Supervisory Committee comprising of eminent scholars in the field of Islamic banking:
- Mufti Ashraf Qureishi
- Dr Yunoos Osman
- Dr Aznan bin Hasan
-
How can Absa Islamic banking and its products be considered Islamic?
Absa Islamic banking has not only developed Shari’ah-compliant products but it has adopted an end-to-end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic banking Shari’ah Supervisory Board, comprising of eminent scholars in the field of Islamic banking. The scholars are not employees of Absa Islamic banking and are independent.
-
What constitutes Riba?
Simply, Riba is also interest. “Any loan that derives benefit”. It could be understood by the following example: If person A lends person B R10 000 and requires B to pay him R11 000 after four months, the additional R1000 is interest and impermissible.
Note: Riba is a fundamental prohibition in terms of Islamic law.
-
Is my debit card for use in other countries?
-
Are the Islamic products for Muslims only?
Islamic deposits are ringfenced within Absa and utilised to fund Shari’ah Compliant financing and trading activities. The profits generated from these commercial transactions are then shared with depositors according to the agreed upon profit share ratios applicable to the relevant Savings and Investments products offered.
-
Islamic Personal Banking Brochure
Download your brochure to find out how you can manage your finances in line with Shari'ah law.
Absa is dedicated to bringing you a product offering that is compliant with Shari’ah Law.
Swipe your card worldwide
Cheque debit card which can be used worldwide.
Manage and track your account online
24-hour self-service access through Absa Online, Cellphone banking and Telephone banking.
Get rewarded for simply using your card
Absa Rewards has been approved by the Shari’ah Supervisory Board. You are also responsible for ensuring that the Rewards are used for benefits which are permitted by Shari’ah Law.
Islamic vehicle finance will ensure that you get the vehicle you want, whether it is for business or personal use, in a fully Shari'ah-compliant manner.
-
How does it work
-
Benefits of Shari’ah-compliant vehicle finance
- Variable and fixed rental fees for the duration of the lease
- Flexible payment options that allow you to reduce your monthly rental fee when you have extra cash
- At the end of the lease, you can choose to purchase the vehicle at an agreed price, nominate a third party to buy it or continue to use it at a reduced or null rental fee
- Access to a range of free services (mechanical and electrical assistance), home and roadside assistance (for breakdowns) and great deals on products and travel services
- Variable and fixed rental fees for the duration of the lease
-
Shari'ah compliance
Shari'ah Law governs the manner in which Muslim people conduct their lives, including banking. Islamic banking is deduced from the Shari'ah Law; hence it differs from conventional banking and forbids the payment or earning of interest, among other requirements.
As an alternative financial system to conventional banking, each of the solutions within Absa Islamic banking are managed and administered according to Shari’ah Law under the guidance of the Absa Shari’ah Supervisory Board – comprised of learned Muslim scholars.
This independent board specialises in Fiqh Almua’malat (Islamic Commercial Jurisprudence), directing, approving, reviewing, supervising and monitoring the activities of Absa Islamic Banking to ensure Shari'ah compliance.
For more information related to Islamic banking products please visit our homepage.
Foreign banknotes
- Foreign currency in major world’s currencies.
- Pay taxi fares or tips without queuing at Bureau de Change.
- Any unused foreign banknotes must be resold to Absa.
Cash passports
- Preloaded with all or any four currencies on a single card.
- Valid ID or passport with air-ticket or e-ticket in your name to qualify.
Forex info
- Provide you with foreign exchange for overload travel.
- Legally required to cash in foreign exchange upon return to South Africa.
- Absa complies with South African exchange control regulations.
Every person would like to be financially independent and this aspiration is within reach if you follow basic principles and stick to your plans.
Once you have established your financial goals, you can select a suitable means of achieving them.
Islamic Depositor Plus Account
A Shari’ah compliant deposit account that empowers customers to save money at their discretion whilst having the freedom to transact and have immediate access to funds when necessary.
Start from as little as R100 and earn tiered profit for a balance of up to R25 million.
Apply now if you’re an existing customer.
Islamic Dynamic Deposit Account
This Shari’ah compliant deposit account is as dynamic as you are. It offers you flexibility to choose your term as well as flexibility to fix a portion and have access to up to 50% portion of your investment on demand. If you don’t access the portion on demand, you earn additional profit share.
Start from as little as a R1000 single deposit, there’s no hidden costs or monthly fees.
Islamic Term Deposit account
Based on the Mudarabah principle, the Islamic Term Deposit is an investment account, which is fully Shari'ah-compliant.
This Shari'ah-compliant fixed deposit account offers a competitive return that will vary according to the investment period you select (8 days to 5 years) and renders a profit share on a minimum opening deposit of R1 000 with no hidden costs or monthly fees.
Islamic TargetSave account
A savings account based on the Mudarabah principle
Starting at a minimum of a R100 pm, our Islamic TargetSave is a contractual 32-day notice account which allows you to earn a competitive monthly profit share.
Islamic law requires that the estate of a Muslim should be distributed according to the Islamic Law of Succession, the detail of which can be found in the Qur’aan in chapter four.
It is a religious obligation for all Muslims living in South Africa to have a Will that conforms to Islamic law, as the estate of anyone passing away without a valid Will is handled according to the South African Intestate Succession Laws, which contradict Shari'ah.
-
Benefits
- Designed according to the principles of the Shari’ah law.
- It is valid legal Will in terms of the Intestate Succession Act. This act deals with the distribution of one's estate in terms of the laws of the country in the event there is no Will.
- Safe custody for your convenience.
*Terms and conditions apply
- Designed according to the principles of the Shari’ah law.
-
Qualifying criteria
-
What it costs
What it costs
- The cost of drawing up an Islamic Will is R342.
- Executor’s fees: 3.5% + VAT of the gross asset value.
- If the client chooses the safe custody option where Absa Trust will keep the Will in safe custody for an annual fee of R60 then the client is entitled to a 15% discount of the executor’s fees.
- If the client is 60 years old and above, with assets to the value of R300 000 or more, the services are free.
Please note: To provide our products and services, we collaborate with other companies, some of which may use our branding. Our Privacy Policy does not apply to these companies' websites. For their privacy policies, please refer to the respective service provider's site.
Need more help?
Let one of our consultants help you with your Islamic banking enquiries.
Call us on: 0860 000 786
Email us at: islamicbanking@absa.co.za