NAB's Islamic finance business soars 28%, expands eligibility criteria to support growing Muslim entrepreneurship in Australia without property security requirements
National Australia Bank (NAB) reported a 28% growth in Islamic finance for business customers in the past year. The bank has now broadened its Islamic finance eligibility criteria, allowing businesses to access funding for acquisitions, equipment purchases, and livestock without requiring property as security.
“The Muslim community is so young and entrepreneurial, often living in fast-growing areas, and this finance option provides them with the support they need to take advantage of new business opportunities,” said Dr. Imran Lum, NAB's head of Islamic finance.
The growth has been strong in New South Wales, which led the expansion with a 54% increase, followed by Victoria at 34% and Queensland at 8%.
As the only major Australian bank offering specialized Islamic financing for businesses, NAB's initiative has attracted both Muslim and non-Muslim enterprises seeking inclusive financing options.
"More Muslim Australians are looking for business funding that fits their values and beliefs. The growth we’re seeing shows just how much this offering has resonated with these customers," Lum said.
One such success story is Your Discount Chemist, started by brothers Fawaz Khodary in 1994. Today, the pharmacy chain has expanded its 13 stores across regional NSW, having just recently drawn on NAB's Islamic financing to build its first warehouse in Port Macquarie.
"Now we have a fantastic new warehouse. It was a big investment, but we'll now be able to keep up with demand, including the end-of-year holiday rush," Khodary said.
The expansion in eligibility criteria manifests NAB's commitment to practices of inclusive banking. "Not every business has property to use as security, that shouldn't stop them from accessing the finance they need to grow," Lum said.
