Non-interest finance describes arrangements structured without charging interest in the conventional manner. Depending on the model, a transaction may involve an asset sale, a lease or a form of investment participation.

The structure matters. Customers should understand what is being purchased or used, who owns the asset at each stage, what payments are required and which responsibilities each party accepts. Specialist governance and appropriate documentation are important parts of the model.

Non-interest does not mean that finance has no cost. An arrangement may include a disclosed sale margin, rental payments or other permitted charges. Compare the total obligations and the practical suitability of the arrangement rather than relying on its label.

Before entering a product, request a clear explanation of the payment schedule, relevant risks, treatment of late payment, early settlement and the process for raising concerns. Obtain appropriate advice where the terms or consequences are unclear.

Vardent is considering a non-interest approach as part of its proposed banking model. The final structure and any future products will depend on the applicable approvals and operating arrangements.