Muslim members of North Jersey Federal Credit Union will have access to a new Islamic banking division in line with their spiritual beliefs.
Working closely with Islamic leaders and mosques to promote the new program, the $187 million CU in Totowa, N.J. is offering an NCUA-insured deposit program up to $500,000?$250,000 through the NCUA and an additional $250,000 through private Excess Share Insurance?that is consistent with the principles of Islamic law or sharia. Under sharia, Muslims are prohibited from engaging in interest payments on loans and other financial products.
Through a partnership with New England Financial, North Jersey FCU is offering Shariah Mutual Funds, in addition to sharia-compliant mortgages and home refinancing. The CU also offers interest-free checking and savings accounts.
According to North Jersey FCU, the state is home to the second largest percentage of Muslims in the country. There are more than 700,000 Muslims in Bergen County, N.J. The CU serves nearly 30,000 members.
"Like many businesses in the North Jersey area, North Jersey Federal recognizes the importance of creativity and flexibility when serving an extremely diverse population," the CU said in a statement.