Governmental bank: loans for hygiene contracts amounting to 15 million dinars comply with Islamic law
The assistant director of the bank, Imad Rassan, said in an interview with Shafaq News Agency that "the loan provided by the bank to the employees of cleaning contracts who work in the departments of the Municipality of Baghdad comes within the initiative of the Central Bank, which is called the "good" loan, which is compatible with Islamic Sharia because it is without profits or interests, but only a commission. Administrative has been set by the Central Bank at 4 percent," noting that "the loan is granted to local people whose salaries are with our bank (exclusively)."
He added that "the loan is granted according to the half-salaries they receive, so that the loan does not exceed 15 million dinars and for a repayment period of five years," noting that "the applicant for funding must provide a guarantor of one or more state departments, and he has a service of not less than two years."
The banking official also indicated that "the loan comes to support this important segment of society to meet some of its needs," calling "cleaners to take advantage of these soft personal finances that do not have interests or profits."
In October 2021, the Central Bank of Iraq directed banks that are authorized to grant soft loans to contract employees (cleaners) covered by Resolution (315) of 2019, within the instructions for granting soft personal loans to state employees.
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