Lloyds launches first Islamic student service

23 August 2006

London-based bank Lloyds TSB looks set to boost the UK's quest to become a centre of Islamic banking by launching the world's first Shariah law-compliant student bank account.

The account does not pay or charge interest, which is forbidden under Islamic law, and all funds in the accounts are to be kept separately from the bank's other accounts in order to avoid 'unsuitable' investments.

The bank claims that it has gone to great lengths in consulting Islamic scholars to ensure that the financial services offered meet the religion's requirements.

"This student account is the first to have been designed with Muslims in mind," commented Paul Sherrin, head of Islamic financial services at Lloyds TSB.

"Britain's two million strong Muslim community is as young as it is fast growing, with more than half under the age of 25 - and of course many of these are studying.

"Until today, however, young Muslim students have had no choice but to go against their beliefs by opening traditional bank accounts. By providing a real alternative that meets their financial and religious needs, we've made it possible for them to enjoy campus life without compromising their faith."

UK students are required to open an account in order to receive the interest free government loans usually required in order to pay university fees.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development