Of Special Interest
10th January 2012
Mitsubishi UFJ new Malaysian Sharia compliant loans
Bank of Tokyo-Mitsubishi UFJ is to introduce a new form of Sharia compliant loans through its Malaysian subsidiary. These loans may be offered in other countries.
The bank obtains its profit on the loan from buying palm oil from the borrower and then selling it back at a higher price. The use of palm oil rather than actual borrower inventory makes the process simpler and faster to administer.