"We wanted to find out if there could be another way to enter a housing market amid rising prices. The product could potentially appeal to young people, new graduates or people who cannot accept normal housing loans because of religious concerns," the bank informed on the website that was set up to promote the idea of "ethical loans."
Within only a week, around 300 people reportedly contacted the bank to express interest in the loans.
"Storebrand is now currently evaluating the market potential for such a loan and considering what the product might look like. We have also been approached by financial advisers from the UK and Malaysia who volunteered to help us put together this type of loan," Storebrand communication manager, Bjørn Erik Sættem, told Norwegian news outlet Vårt Land.
At the same time, Sættem admitted that the bank also had received also "a handful" of negative reactions to the bank's "bowing and scraping," with some customers reportedly having repudiated their ties with the bank.
Storebrand is one of Norway's oldest financial services companies, tracing its roots back to the 18th century. Its main activities are related to life insurance and pension savings.
Islamic law prohibits the acceptance of specific interest or fees for loans of money, regardless of whether the payment is fixed or floating, as sinful. As of 2014, sharia-compliant financial institutions represented 1 percent of total world assets.