Jaiz Bank, Nigeria’s first fully licensed non-interest bank, operates under Islamic finance principles—favoring ethical, interest-free banking (e.g. Murabaha, Ijara, Musharaka) (Wikipedia). It offers tailored financing to individuals, SMEs, and corporates based on transparent cost-plus or profit-sharing structures.
1. Working Capital Financing (Murabaha)
Purpose: Fund inventory, stock, or operational needs.
How it works: Submit a proforma invoice; Jaiz pays your supplier directly; you repay (cost + profit margin).
Tenor & Repayment: Terms agreed upfront—typically short-to-medium term.
Eligibility: 1+ year in business, CAC registration recommended, 6+ months bank statements, active Jaiz account, good profitability/cash flow (SukFin).
2. Household Appliance Finance (Murabaha)
Purpose: Personal purchase of household items (TV, fridge, laptop, etc.).
Structure: Bank buys and sells the item to you at cost + markup.
Repayment Period: Up to 24 months via monthly payroll deduction.
Eligibility: Salary account domiciliation, stable income (LoanSpot, Jaiz Bank PLC, Lending Naija).
3. Lease‑to‑Own (Ijarah wa Iqtina)
Purpose: Lease assets (vehicles, equipment), with eventual ownership.
Mechanism: You lease; make payments over time; option to own at end of contract.
Tenure: Structurable to match needs; repayments spread over lease period.
Eligibility: Valid account, salary/turnover, documentation of asset intent (Search Daily).
4. Project Financing / Construction (Istisna’a)
Purpose: Bank constructs or builds a project (e.g. buildings, factories) for you.
Payment Terms: You pay after delivery or via installment schedule.
Tenor & Repayment: Flexible—can be long-term with milestone payments.
Eligibility: Viable project plan, registered business, financials, collateral or partnership terms (Dopegram).
5. Ijara Service (Deferred Services Murabaha)
Purpose: Prepaid services like school fees, rent, medical bills.
How it functions: Bank pays service provider on your behalf; you repay over time.
Tenure: Up to 12 months; monthly repayment.
Eligibility: Salary domiciliation required; payment to provider directly managed by bank (Jaiz Bank PLC).
6. Equity Financing (Musharaka)
Purpose: Joint venture with the bank to invest in or grow a business.
Structure: Shared capital; profits (and risks) shared per equity proportions.
Repayment: Profit share returns as scheduled; capital returned as agreed.
Eligibility: Strong business plan, formal structure, good financial track record (SukFin).
7. Guarantees & Bonds (Wakala / Kafala)
Purpose: Provide performance, advance payment, or bid bonds to clients.
Structure: Bank issues guarantee on your behalf; you pay a service fee.
Eligibility: Credible business, purpose tied to contracts with government or firms (Nyscinfo).
8. Import / Export Financing (Murabaha)
Purpose: Trade finance for import/export deals (LCs, supplier payments).
Structure: Bank pays suppliers or issues letters of credit; you repay on delivery or terms.
Eligibility: Registered trader, transaction-backed, positive trade and credit history (Reddit).
9. SMEDAN‑Jaiz MSME Loan Initiative
Partner Program: Collaboration with SMEDAN to offer low-rate financing.
Loan Size: ₦500,000 – ₦2.5 million
Interest Rate: 9% p.a. (lower than market)
Tenure: Up to 1 year for micro-enterprises; up to 5 years for SMEs
Moratorium: Tailored (possible grace period)
Eligibility: CAC & SMEDAN registration, entrepreneurship certificate, business plan, financials (Dopegram, Search Daily).
Why Choose Jaiz Bank Loans?
Sharia-compliant & interest-free: Operates via ethical Islamic finance—not conventional interest (SukFin, Lending Naija, Search Daily, Jaiz Bank PLC, Nyscinfo).
Transparent cost-plus pricing: You know the markup up front.
Flexible repayment: Options based on salary deduction, project schedule, or periodic installments.
Dedicated MSME support: Especially via SMEDAN collaboration with lower rate and tailored terms.
Diverse product suite: Ranges from personal consumer finance to large-scale project development.
Eligibility & General Criteria
Citizen/business with profit history and bank account.
Business must be registered (CAC recommended).
Jaiz account active for at least 3–6 months, with statements.
Salary domiciliation often required for personal and consumer finance products.
Acceptable credit profile—with preference for collateral-backed or partnership agreements (Jaiz Bank PLC, Jaiz Bank PLC, Nyscinfo).
Visit any Jaiz Bank branch across Nigeria—loan advisors assist in selection.
Complete application forms specific to loan product.
Submit required documentation: ID, bank statements, CAC (for businesses), business plan (for project loans), salary slips, SMEDAN & entrepreneurship certification (for SMEDAN scheme).
Review and sign offer letter detailing bank cost, repayment schedule, tenure.
Funds released per financing structure (goods, direct pay to provider, project finance, etc.).
Repayment begins as per contract; monitor schedule.
Key Points to Remember
No hidden interest—profit margin is agreed upfront.
Cost-plus finance means fixed markup, not variable interest.
Grace periods (moratorium) exist mainly in SMEDAN-linked MSME program; otherwise, cost accrues from start.
Missing repayments may lead to default handling and removal of privileges.
Seek clarity on full repayment schedule before committing. The bank must provide clear repayment table.
Final Recommendations
Choose Murabaha products for ethical, fixed-cost borrowing.
Use Appliance Finance if you need gadgets or household items.
Go for Project or Lease finances if expanding infrastructure or acquiring equipment.
SMEDAN partnership is ideal if you’re an SME looking for low-cost capital.
Always ensure salary or business account domiciliation with Jaiz for smoother processing.
Consult Jaiz’s in-branch loan advisors for tailored terms and to download specific product brochures.
