How You Can Get Non-Interest Loans In Nigeria With Jaiz Bank

A non-interest load everyone isn't it? well as far as Nigeria is concerned, Jaiz Bank is Nigeria's pioneer interest-free bank. These days when we have loads of loan apps springing up in Nigeria, a bank that offers interest-free loans is worth zooming out on. If you are looking for non-interest loans in Nigeria, Jaiz Bank is the go-to bank. In this article, we will take a look at the bank's profile, how to apply and qualify for a Jaiz bank loan, and much other vital information that might interest you about the bank. 

How You Can Get Non-Interest Loans In Nigeria With Jaiz Bank

Firstly, let's take a look at the bank as a financial entity fully operational in Nigeria.

About Jaiz Bank

With the purpose of "Making Life Better Through Ethical Finance," Jaiz Bank Plc, the first non-interest bank in Nigeria, has been offering ethical services to individuals, businesses, and governmental bodies since 2012. Since its launch, exactly ten years ago, the nation's top non-interest bank has maintained its leadership position by developing this alternative financing model, laying the groundwork for its growth, and providing the necessary moral funding for the nation's infrastructure development.

The Bank has received significant national and international recognition during this time, including the Global Islamic Finance Awards' Most Improved Islamic Banking honors in 2020 and 2021, respectively (GIFA). It is noteworthy that despite the absence of Islamic banking and finance instruments in the nation, the Bank nonetheless holds the distinction of being the first Islamic bank in the world to achieve break-even within the first three years of existence.

The seven concepts that make up the acronym RESPECT—responsibility, entrepreneurship, simplicity, partnership, excellence, customer focus, and trust—are the foundation of Jaiz Bank's basic values. These guiding principles help the Bank realize its aim of dominating ethical banking in Sub-Saharan Africa. The balance sheet size of Jaiz Bank, which increased from N12 billion in 2012 to N233 billion as of December 31st, 2020, is publicly traded on the Nigerian Stock Exchange (NSE).  Also increasing from almost N30 billion in 2012 to N166 billion were financing and investment assets (as of December 31st, 2020). Since the beginning, other crucial factors including customer deposits, the branch network, and profitability have all increased year over year.

How You Can Get Non-Interest Loans In Nigeria With Jaiz Bank

Getting an interest-free loan to finance your business or projects has never been this easier, many thanks to Jaiz Bank Nigeria. Keep reading ...

Types of business loans available through Jaiz Bank

Working Capital Financing (Murabaha)

Through this working capital finance facility, Jaiz Bank can help with your business’s daily cash needs. Use this facility to finance the purchases of inventory or stock among other things. The facility works by you sourcing goods and presenting a proforma invoice to Jaiz. The bank will then directly make payment to the supplier. You are to repay borrowed funds (cost plus profit) at an agreed future date.

Project Financing / Construction (Istisna’)

Jaiz Bank’s project financing facility is a great way to finance relatively large industrial projects. Here, the bank agrees to construct and sell the project in question on deferred payment terms. The bank’s selling price will be at “cost plus a profit margin”. Repayment can be tailored to your needs you have the option of paying in full after the project has been delivered, or paying in installments.

Lease to Own Finance (IjarawaIqtina)

With this leasing facility, Jaiz Bank enables you to rent or lease assets from the bank with the option of purchasing the asset at the end of the contract. Here, Jaiz simply buys an asset for you while you make regular lease payments over time.

Jaiz Ijara Service Corporate

The Jaiz Ijara service provides a means for companies to pay for salaries, professional services, labor, travel, and other related working capital expenses.

Equity-based Finance (Musharaka)

Jaiz Bank, with its Musharaka facility, forms a partnership with your business. Under this partnership, each party will make an equity or capital contribution to establish a new project or expand an existing one.

Bonds and Guarantees (Wakala/Kafala)

These products are targeted at businesses that need to demonstrate their creditworthiness, or their capacity to meet their contractual obligations. Here, a bank guarantee can be issued by Jaiz Bank for things like advance payments, performance bonds, and more.

Import Finance (Murabaha)

Companies involved in importing goods from overseas are the beneficiaries of this product. Under this import financing facility, Jaiz has products like letters of credit that enable you to easily make trade payments with reduced risk.

Export Finance (Murabaha)

Export financing, like import financing, is a form of trade finance. Nigerian exporters and trading companies can benefit from this product. Funds can be advanced both at the pre and post-shipment stages.

Qualifying for a Jaiz Bank business loan

Jaiz Bank has a variety of funding options suitable for both big and small companies. Each funding option will come with its own set of terms and conditions. As such, not all products will be appropriate for your business. That being said, there are certain lending criteria that you must meet as a minimum no matter the finance product that you apply for.

In general, terms, to be eligible for financing your business must be somewhat profitable. Your company will also need to have a good credit history particularly if you want to get an unsecured loan. Secured loans place slightly more importance on the collateral offered rather than on prior credit history.

Other general lending requirements can (but not always) include:

• Having a registered business or company with the Corporate Affairs Commission (CAC)
• Having a business or corporate bank account
• Been trading for some time (1-3 years minimum)
• Must have a good Credit Bureau Report with no unpaid obligations or bad debt
• Being an active customer of the bank

Although only registered companies are eligible to apply for a business loan with Jaiz there are other options for unregistered businesses. Jaiz Bank does also provide personal loan products and salary advances that you may be able to use for business purposes. Another option is to apply for finance with SukFin which can provide you with a mix of other funding solutions.

How to apply for a Jaiz Bank business loan

Jaiz Bank accepts business loan applications at most of its bank branches. Before you make an application, it’s good to be aware of the financing products on offer. This can be further discussed with a loan adviser in-branch. Most loan applications will involve filling in an application form. This form will ask for various details about your company, its trading history, and the loan purpose. In addition to filling in an application form. You will often be required to provide supporting documentation.

Jaiz will evaluate your business's suitability for financing using the completed application form, supporting documentation, and any relevant publicly available information. Evaluation will be done against Jaiz Bank lending guidelines. Should your loan application be approved, Jaiz will issue you an offer letter. This offer letter will state any terms and conditions to be met before funds are disbursed.

A checklist of important documentation, often requested includes:

• Completed application form
• Company profile
• Business plan
• Cash flow budget
• Bank statements (12 months)
• Audited financial accounts
• Certificate of Incorporation
• Valid means of identification (driving license, passport, voters card)
• Proof of address
• Details of collateral offered (if any)