Muzn Shari’a-compliant travel finance
Muzn Islamic Banking’s new Shari’a-compliant product offers simple, affordable instalments that cover the cost of airfare, hotel bookings, airport transfers and even excursions and sightseeing, with Muzn Travel Finance.Customers can choose to travel with a list of pre-approved travel agents or select their own.
Salima Obaid Issa Al Marzouqi, acting head of Islamic Banking at NBO, tells TTN, “Demand for travel has certainly increased with more people opting for financing options to support their travel plans. At Muzn we are committed to offering products and services that meet this increase and our customers’ evolving needs, while respecting the values and principles they live by. “We are committed to offering products and services that meet our customers’ evolving needs, while respecting the values and principles they live by. Muzn Travel Finance opens up new travel horizons while adhering to the highest level of Shari’a compliance. Travellers now have an option to travel to their dream destination with affordable financing without compromising on their values.”
“Our Muzn Travel Finance product is not dependent on a short-term credit card-based facility. Instead, it offers longer term financing options with simple, affordable instalments.” Muzn Travel Finance is based on the concept of Service Ijarah, whereby the bank acquires services from the travel agent or travel service provider of the customer’s choice provided they adhere to the bank’s pre-determined criteria. Under the arrangement, the service provider is appointed to provide the services to the customer for a service cost paid by the bank. Subsequently, the bank leases the services to the customer for a price to be paid by the customer to the bank in instalments. “People travel for various reasons including religious (for example, Haj, Umrah, and Ziarah), recreation, medical, study, and research. However, Sharia’h-compliant travel financing options in the market are very limited. We created the travel finance product to offer affordable instalments that cover the cost of airfare, hotel booking, airport transfers, and even excursions and sightseeing, while not compromising on our customers’ values. It is all part of offering compelling solutions for every customer and living up to our reputation as a leading Islamic Banking window in Oman. The offer is open to anyone aged between 21 to 60 years old. One hundred per cent financing value is available but the maximum personal financing amount is also subject to the applicant’s Debt Burden Ratio (DBR). The product also comes with a Takaful life insurance coverage.