Sberbank Introduces Islamic Mortgage Options in Bashkortostan and Dagestan

24 November 2023

Sberbank has initiated a pilot project called "Murabaha Mortgage" in Bashkortostan and Dagestan. This program involves the sale of real estate with a markup, eliminating the payment of interest. According to the bank's statement, the down payment requirement is set at 30%, and individuals can avail themselves of loans ranging from 300 thousand to 100 million rubles.


"Sberbank and the real estate service 'Domklik' have jointly introduced a pilot product named 'Murabaha Mortgage' in Bashkortostan and Dagestan. The financing terms, outlined in the purchase and sale agreement, specify the property value inclusive of markup, with payments scheduled in interest-free installments. This financing approach aligns with the standards set by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)," as stated in the announcement.


The new financial product is accessible for amounts ranging from 300 thousand to 100 million rubles, with a repayment period of up to 20 years and a minimum down payment requirement of 30%. Sberbank noted that the product is certified by the Shariah Advisory Council.


"We are delighted to introduce the 'Murabaha Mortgage,' a novel product enabling customers to acquire housing in adherence to Islamic finance principles. Importantly, 'Murabaha Mortgage' will be accessible to all Russian citizens, irrespective of their religious affiliation, making it an appealing option for a broad spectrum of our customers," quoted Oleg Ganeev, Senior Vice President at Sberbank, in the statement.


In Bashkortostan, under the "Murabaha Mortgage" program, individuals can purchase housing in both new developments and the secondary market. In Dagestan, however, the program is limited to acquiring properties exclusively in new developments. Notably, real estate in the primary market can only be bought from developers accredited by Sberbank, utilizing escrow accounts.



GSV "Russia - Islamic World"

Photo: Sber

Based on materials from TASS