Why do you advertise interest rates and what is the benchmark used?

Offa, together with other Islamic finance providers, advertises rates for products so
that customers can compare the rates and charges to those of conventional banks. A
percentage simply means a proportion, so this is not an interest rate. Rather, it is a
rental rate.

It is important to understand that Sharia does not prohibit the use of benchmarking
as long as it is a commonly recognised and easily accessible benchmark. A
benchmark is an important tool in Islamic finance. Providers must ensure that their
products, and the prices that are charged, avoid uncertainty for the customer and are
consistent with the prices of the local market.