Tim Shufelt, National Post
March 30, 2010
Mastercard introduces a new zero-interest credit card in North America that aims to accomodate both the Islamic canonical law and Western consumer culture, the iFreedom Plus Mastercard.
Muslims have been prevented from owning interest accrueing credit cards because this is a violation of their Shariah Law. But the iFreedom Plus Mastercard will change all that. This credit card, which is set to be available soon, promises no bills, incurs no interest and promises no credit card debts.
UM Financial, an Islamic financing firm based in Toronto, is launching this product with the Mastercard Brand. Omar kalair, the President of UM Financial, said that every one wants and needs a credit card in their pockets. Credit cards are used in everyday lives. You can't rent a car and you can't travel if you don't have a credit card.
Banks don't have any incentive to offer this kind of products since it does not incur any high-interest rates. So with iFreedom Plus Mastercard, the card holders deposit cash of up to $6000 in advance in the card. Each purchase made on the card will not incur any interest. This idea is based on the Islamic religious principle that finance should be based on one's own asset and this is commended by Muslim religious scholars since you're spending your own money and does not put a stress on you like when you use a regular credit card.
This card guarantees approval without credit check and for two years of use, the cardholder will pay $50 and card transfer will cost 95 cents. It also offers 1 per cent cash back on purchases of more than $100. Plus, iFreedom Plus Mastercard holders will get 10% discount on Etihad Airways, an Abu Dhabi- based carrier.
VIA National Post
Keyword: Credit Card
