Lloyds TSB Islamic banking expands

Lloyds TSB will be offering Shariah, or Islamic, banking at four more branches from today.

The service is aimed at Britain's Muslim community, for whom interest banking is forbidden, providing a current account and home finance service compliant with Islamic Shariah law.

This expansion comes on the back of successful pilot schemes, which have proved to be popular with Britain's two million Muslims, who cannot pay or receive interest.

Gordon Rankin, of Lloyds TSB Islamic financial services, said: "There is now a real choice on the high street for Muslims who want an alternative to conventional current accounts and mortgages and we're proud to be able to give these customers something we know that they will value."

The current account has no overdraft or credit facility, charges no fees and comes with a debit card.

Meanwhile, to ensure the mortgage applies with Islamic law, the bank would buy the home outright, the borrower pays the interest as a lump sum and then pays the bank "rent" for the rest of the term, until the loan is paid off.

The service is now available at Slough, Walthamstow, Stevenage and Barkingside.