Androscoggin Bank now offering mortgage plans compliant with Muslim law

ANDROSCOGGIN, Maine (WMTW) - Androscoggin Bank is now offering mortgage plans without interest payments in order to comply with Muslim law.

Some devout Muslims do not purchase homes as a result of the Muslim teaching that interest rates increase the gap between the rich and poor.

The bank is the first in Maine to offer the plan. The specifics of the Androscoggin Bank plan are not known, but other variations of the Islam-compliant loan elsewhere involve a bank obtaining ownership of all or part of a home, with payments acting as a means of buying back the home.

The plan was created in partnership with ProsperityME and the Greater Portland Immigrant Welcome Center.

“We are excited to offer this access to financing alternatives to our New Mainer neighbors to enable them to purchase their own homes and to start building equity to secure their futures,” said Androscoggin Bank CEO Neil Kiely in a statement. “As a B Corp Bank, it is a great example of how our team of purpose-driven colleagues strive to deliver great human outcomes in addition to great financial outcomes.”

“The experience for all of us involved from the Bank in collaborating with our friends at Portland Immigrant Welcome Center and Prosperity Maine and working closely with members of the New Mainer community to bring this to fruition has been incredibly rich and fulfilling. It has inspired us to continue to listen deeply to all our stakeholders to identify new challenges we can lend support to while continuing to serve our client’s banking needs with passion and excellence.”