Jaiz Bank loan offers multiple interest-free business finance products.
Jaiz Bank loan offers multiple interest-free business finance products.
Nigerian Islamic or interest-free bank Jaiz Bank. It was the first bank of its kind to be created in the nation, and it is headquartered in Abuja.
In 2012, the bank started operating, with offices in Abuja, Kaduna, and Kano. Jaiz has since grown to be a national brand.
A variety of personal, SME, and corporate banking services are offered by Jaiz Bank.
Funding and types of business loans available through Jaiz Bank
Working Capital Financing (Murabaha)
The working capital finance facility offered by Jaiz Bank can assist with your company’s ongoing cash flow demands. Use this facility, among other things, to finance the purchase of stock or inventories. You source the goods for the facility, and then you give Jaiz a proforma invoice. The supplier will then get payment directly from the bank. At a mutually agreed-upon future date, you must refund the borrowed cash (cost plus profit).
Project Financing / Construction (Istisna’)
The project financing option offered by Jaiz Bank is an excellent approach to fund reasonably sizable industrial projects. In this situation, the bank consents to build and sell the project in question with deferred payment terms. The selling price set by the bank will be “cost + profit margin.” You can choose to pay all at once when the job is finished, or you can pay in instalments, depending on your needs.
Lease to Own Finance (IjarawaIqtina)
With the help of this leasing option, Jaiz Bank gives you the choice to rent or lease assets from the bank with the option to buy the asset at the conclusion of the lease. In this case, Jaiz merely purchases the asset on your behalf while you gradually make regular lease payments.
Jaiz Ijara Service Corporate
The Jaiz Ijara service gives businesses a way to pay for wages, consultants, labor, travel, and other associated working capital costs.
Equity-based Finance (Musharaka)
With their Musharaka facility, Jaiz Bank collaborates with your company. Each member in this collaboration will contribute equity or funds to start a new project or grow an already existing one.
Bonds and Guarantees (Wakala/Kafala)
These goods are intended for companies who must prove their creditworthiness or ability to fulfill contractual obligations. Here, Jaiz Bank is able to provide a bank guarantee for items like advance payments, performance bonds, and more.
Import Finance (Murabaha)
The companies that import items from other countries benefit from this commodity. You can simply make trade payments with less risk using Jaiz’s products, such as letters of credit, under this import finance facility.
Export Finance (Murabaha)
A type of trade finance is export financing, just as import financing. This product can help Nigerian exporters and trading companies. Money can be advanced both before and after shipping.
Qualifying for a Jaiz Bank business loan
Jaiz Bank offers a range of lending alternatives that are appropriate for both large and small businesses.
There will be certain terms and limitations associated with each funding option. As a result, not every product will be suitable for your company. No matter the type of finance product you apply for, there are minimum lending requirements that you must meet.
In general, your company must be fairly profitable in order to qualify for financing. A solid credit history for your business is also required, especially if you intend to apply for an unsecured loan. Secured loans give the given collateral slightly more weight than the borrower’s credit history.
Other standard loan standards may, but are not required to, 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 firms are qualified to apply for a business loan through Jaiz, unregistered enterprises do have other choices.
Jaiz Bank also offers salary advances and personal loans, both of which you might be able to employ for commercial endeavors.
Another choice is to submit an application for financing through SukFin, who can offer you a variety of alternative funding options.
How to apply for a Jaiz Bank business loan
Most of Jaiz Bank’s bank branches accept applications for business loans. It’s wise to be aware of the financing options available before submitting an application; you can further discuss this with a loan consultant in-branch.
Filling out an application form is a common requirement for loan applications. Various information about your business, its past transactions, and the loan’s objective will be requested on this form. It’s common to be asked for supporting papers in addition to filling out an application form.
Utilizing the completed application form, any necessary supporting papers, and other pertinent publically available information, Jaiz will assess your company’s eligibility for financing. The evaluation will be done in accordance with Jaiz Bank’s lending policies.
If Jaiz approves your loan request, he will send you an offer letter. Any terms and restrictions that must be satisfied before funds are issued will be stated in this offer letter.
The following items are on an often requested list of crucial documentation:
- 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)
Please take note that the specific documentation you will be requested to submit depend on the credit facility you are requesting.
How long will it take before receiving funds from Jaiz Bank?
The credit facility in question has a significant impact on how long it takes to receive payments. Smaller unsecured loans typically have faster disbursement times.
How long do I have to pay back a Jaiz Bank loan?
Both short- and long-term lending facilities are offered by Jaiz Bank. For any cash advanced, the repayment schedule is also adaptable.
How much can I borrow from Jaiz Bank?
Your company’s turnover is the main determinant of the amount of money Jaiz Bank will lend you.
What is a non-interest bank?
Islamic banks or non-interest-bearing banks, like Jaiz, do not pay or receive interest. Instead, they generate income through the acquisition and sale of assets, leasing (and the collection of rent payments), and collaboration (i.e. joint ventures on an agreed profit and loss sharing formula). Alcohol, cigarettes, and gambling are prohibited by Islamic banking. It’s also forbidden to engage in highly speculative or unclear trades.
Does Jaiz Bank require collateral?
Collateral is not required for any of Jaiz Bank’s loan programs. Nevertheless, you will frequently be required to put up some sort of collateral when borrowing a significant amount of money.
The following are examples of acceptable security or collateral:
- Obligations of the Federal Government of Nigeria (FGN Bonds, FGN Eurobonds, FGN Treasury Bills etc.)
- Obligations of state governments or agencies of the Federal Government of Nigeria
- Other non-government debt instruments
- Physical assets e.g. real property
- Third party guarantors (or collateral)