5 November 2024 12:30 am Views - 126
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Shiraz Refai
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Nishantha Jayasekara
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LOLC Al-Falaah has reached an impressive milestone. It has become the first Non-Banking Financial Institution (NBFI) in the country to launch the ‘Wadi’ah Gold Storage Facility,’ offering alternative features to conventional gold loan products, and has surpassed a benevolent cash advance portfolio exceeding Rs. 2 billion.
This achievement marks a new chapter in the company’s journey of providing ethical, Shari’ah-compliant financial solutions to a wide-reaching clientele, with a unique concept aligned with the value chain and respecting the beliefs of the segment across the island.
A key feature that sets this facility apart is its transparency and security, backed by the strength of LOLC Finance, where each customer receives a ‘Gold Storage Certificate’ detailing the exact weight, quality, and value of their stored gold. State-of-the-art equipment is used for the gold assessment, ensuring no test damages to the articles.
This certificate was also designed to address the immediate liquidity needs of Sri Lankans through its ‘Benevolent Cash-Advance’ feature, allowing depositors to draw up to 90 percent, particularly during times of economic hardship.
This feature assisted many across the island during Sri Lanka’s great economic crisis in recent years, with LOLC Al-Falaah quickly becoming a lifeline during these challenging times. Over 5,000 customers have already benefited, and it has rapidly expanded to 172 branches nationwide, making it one of the largest Islamic alternatives to conventional gold loan offerings in the industry.
Shiraz Refai, Head of Alternate Financial Services at LOLC Al-Falaah, stated, “Wadi’ah is a versatile product offering that caters to clients who wish to safeguard their valued gold articles, where trust and reliability, backed by personalized service, are key.
We offer more than just basic service standards, aligning authentication certification of gold articles with uncompromised professionalism through our well-trained staff island-wide.”
The product offers flexible storage options of 3, 6, and 12 months, with minimal custodial fees, making it accessible to a broad segment of society. Furthermore, all stored gold is protected under free Takaful insurance, ensuring that customers’ assets are safeguarded against unforeseen risks.
Nishantha Jayasekara, Head of Gold Loans at LOLC Finance, emphasized the broader societal impact of the Wadi’ah Gold Storage facility. “This product has provided much-needed financial support to thousands of customers, especially during the recent economic turbulence.
The facility not only helps individuals with immediate cash needs but also empowers them to secure their financial future. We’ve seen first-hand how this service has alleviated financial stress for families, and we plan to expand further to reach even more communities across the country.”
As the first Islamic NBFI to cross this historic milestone, LOLC Al-Falaah’s success reflects not just its financial acumen, but also its unwavering commitment to fostering financial inclusivity and empowerment through the principles of Islamic economic philosophy.