Bank Muamalat Malaysia Berhad will roll out the Awwal Credit Card-i to the public in October 2026, offering profit rates starting from 14% per year on a non-compounding basis with no annual fee. The Islamic credit card is designed to lower financing costs for cardholders and includes complimentary takaful coverage on outstanding balances.
Key Facts At A Glance
- Card name: Awwal Credit Card-i
- Issuer: Bank Muamalat Malaysia Berhad
- Profit rate: starting from 14% per year
- Charging structure: non-compounding profit, no hidden charges
- Annual fee: none
- Added benefit: free takaful protection on outstanding balances
- Full balance settlement before due date: no profit charges incurred
- Public availability: expected October 2026
Bank Muamalat Malaysia Berhad has announced the upcoming launch of the Awwal Credit Card-i, an Islamic credit card built around a lower-cost, non-compounding profit structure. The card carries a profit rate starting from 14% per year and charges no annual fee, positioning it as a cost-focused alternative to lifestyle-rewards cards common in Malaysia’s credit card market.
Product Structure And Shariah Principles
The bank said the card was developed on the principle that credit facilities should strengthen customers’ financial well-being rather than drive excessive indebtedness. Profit is applied on a non-compounding basis, meaning outstanding charges do not accumulate additional profit on top of previously charged profit, a structure the bank frames as more transparent than conventional compounding interest models. Customers who pay off their full outstanding balance before the payment deadline will not incur any profit charges at all.
Takaful Coverage Included
The Awwal Credit Card-i will bundle free takaful protection covering outstanding balances at no additional cost to the cardholder. This differs from Bank Muamalat’s existing Pos Malaysia-branded Visa Credit Card-i products, which have historically centered on cashback and travel-related perks rather than debt protection features.
Market Context
The launch comes as Malaysian Islamic banks compete on product transparency and lower effective financing costs, particularly as regulators and consumer groups scrutinize credit card charge structures across the industry. Bank Muamalat, a fully Islamic bank, said every product should reflect fairness, transparency, and responsibility in line with Islamic finance principles. The Awwal Credit Card-i is expected to become available to the Malaysian public in October 2026.