BRI’s Shariah Branch Debuts Program to Tap Interest in Gold, Islamic Finance
BRI Syariah came with a brand new product which allows its customer to buy gold in installments.
President director Ventje Rahardjo stated that the bank is planning to provide Rp 400 billion ($46.4 million) in financing for customers in order to buy gold.
The product uses two Shariah contracts, qardh and ijara . Under qardh, the bank loans money to the customer to buy the gold, and the debtor is only required to repay the amount borrowed. The customer must keep the physical gold in the bank’s vault which, under ijara, is rented out by the bank.