University Bank of Ann Arbor launched rent-to-own commercial financing this year as part of its growing Muslim lending platform, with plans to lend up to $1.3 million for a commercial project.
"We expect that we will have a lot of businesses interested in the commercial side," said Amjad Quadri, assistant vice president of development and new markets. "It's something Muslims have been interested in for a long time. There are a lot of entrepreneurs."
The bank's division for Muslim financing - which follows specific Islamic law on lending and paying interest - has allowed University Bank to offset the slump in the national housing market.
Known as Sharia financing, the Ann Arbor-based bank has a line of products that appeal to Muslim families.