Bank Muamalat Malaysia Berhad is an Islamic financial institution in Malaysia, the second full-fledged Islamic bank established in the country, following Bank Islam Malaysia Berhad. It offers Malaysians a range of Islamic banking products and services without discrimination based on race or religious beliefs.
Bank Muamalat is one of two independent and domestically-owned Islamic banks in Malaysia, signifying its substantial role in the country’s Islamic financial sector. It emerged in 1999, stemming from the Islamic banking components of Bank Bumiputra, Bank of Commerce Malaysia, and BBMB Kewangan, with the conglomerate DRB-HICOM owning a significant stake in the bank.
The bank’s core activities include providing loans to small and medium-sized enterprises (SMEs), accepting deposits in both domestic and foreign currencies, and offering an array of banking services, including checking and savings accounts, portfolio management, foreign exchange, and electronic banking services. Being a Sharia-compliant bank, it operates by Islamic banking principles, making it a vital player in Malaysia’s Islamic banking landscape.
Bank Muamalat in Malaysia caters to various financial needs through its diverse loan offerings. Here are some of the loan services provided by Bank Muamalat:
Personal Financing
- Personal Financing-i: This scheme is designed to provide cash financing for personal consumption or use in line with Shariah principles. The term ranges from a minimum of 2 years to a maximum of 10 years, with a financing limit of up to RM400,000. Eligibility for this financing includes government employees, newly employed civil servants, contract government servants, and employees under the Empanelment Program (EEP) with varying income requirements based on employment status.
- Cash-i Muamalat: Specifically targeted towards Government employees, GLCs, GLICs, and Employers under the Empanelment Program-EEP, this facility appears to cater to personal financing needs.
Home Financing
- Home Financing-i: Bank Muamalat provides a variety of home financing options under this scheme including SMART Mortgage HOME, SMART Mortgage EEP, SMART Mortgage FLEXI, SMART Mortgage Solution, SMART Mortgage SJKP, SMART Mortgage SRP (Skim Rumah Pertamaku), SMART Mortgage WAQF, and SMART Mortgage Professionals. These cater to different segments of home buyers with varying eligibility criteria. For instance, SMART Mortgage SRP is designed for first-time home buyers with specific income requirements.
- Shophouse Financing-i and Land Financing-i: These are additional property financing options provided by Bank Muamalat, catering to individuals looking to finance shophouses and land purchases.
Business Financing
- SME Loan: The SME loan from Bank Muamalat aims to assist aspiring entrepreneurs in starting or maintaining their businesses. Though the specific details of the loan offering weren’t provided, it’s clear that Bank Muamalat is engaged in supporting small and medium-sized enterprises (SMEs) in Malaysia. Bank Muamalat has allocated RM500 million in financing facilities to assist vendors in business and technology development in alignment with Industry 4.0.
Bank Muamalat’s loan offerings are designed by Islamic banking principles and cater to a broad spectrum of financial needs ranging from personal, and home to business financing. They provide a range of home financing solutions to cater to the diverse needs of homebuyers, be it first-time buyers or professionals.