🏦 Overview: What Is Jaiz Bank?
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.
📌 Jaiz Bank Loan Products
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).
📋 Summary Table
| Product | Tenure | Repayment Mode | What It’s For |
|---|---|---|---|
| Working Capital (Murabaha) | Short/Medium-term | Cost + profit, schedule | Inventory, stock, business needs |
| Appliance Finance | Up to 24 months | Monthly salary deduction | TVs, laptops, home appliances |
| Ijarah wa Iqtina | Flexible | Lease payments | Vehicles, machinery, equipment |
| Project Finance (Istisna’a) | Long-term | Milestones or lump sum | Construction, industrial projects |
| Ijara Service | Up to 12 months | Monthly installment | School fees, rent, hospital bills |
| Musharaka | Medium/Long-term | Profit share/Capital | Joint business ventures |
| Guarantees (Wakala/Kafala) | Depends | Service fee | Bonds for contracts or advance payments |
| Import/Export (Murabaha) | Trade-term structured | Cost + profit | Cross-border trade finance |
| SMEDAN-Jaiz MSME Loan | 1–5 years | 9% p.a., possible grace | Small business expansion |
✅ 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).
📌 How to Apply
- 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.
