Launch of the first non-interest based North West Ethical Fund

The North West Ethical Fund has been launched to promote financial inclusion for business entrepreneurs who cannot gain access to finance and is in line with Islamic finance principles and ethics.

BBV Ltd is a registered Community Development Finance Institution which provides loans and investments to disadvantaged communities under the banner Business Finance North West.  Already it has financed £3.6 million to 550 businesses, including 320 new start-ups, which have created 1,400 jobs and levered an additional £7 million into these businesses.

The North West Ethical Fund has been specifically designed on Islamic financial principles to meet religious, cultural, social and financial needs in a Sharia’a compliant way.  The Fund is open to Muslims and non-Muslims alike and is available for new business start-ups and existing businesses throughout the North West, which want to borrow from a non-interest based source of finance.
 
Loans will be operated in accordance with Sharia’a principles and will be competitive with those provided by the banks.  Amounts range from £5,000 to £30,000 and all applications will be assessed in the normal way after first ensuring that any investment will only be in Sharia’a compliant goods and services, excluding items such as alcohol and tobacco.

Commenting on the launch of the Fund Paul Davidson, CEO, said: “This Ethical Fund is the first of its kind in the North West and we have invested heavily to ensure that the Fund is in line with Islamic financial principles.  The Fund allows individuals to borrow whilst maintaining and respecting religious teachings which does not allow a fixed return on capital such as charging and receiving interest.  We believe in financial inclusion for all and we aim to provide enterprise services to all sectors of the community.”

Also commenting on the Launch of this Fund, Lord Nazir Ahmed, founder of the British Muslim Counsellors Forum, said: “In the interest of financial inclusion it is important to look at how lending for entrepreneurs can be made inclusive through access to loans that are in line with Islamic finance principles.”

For more information about the North West Ethical Fund and an application pack, contact Business Finance North West on 01204 391400 and speak to John Whittaker or Dave Astley.