Nigeria Non Interest Banking Jaiz bank has unveiled their loan package that is designed to target Nigerian who’s seeking for loan facility either Home Finance,Auto Finance or MSMES Financing
The bank uses various modes of contracts such as partnership, lease and sales to meet customer’s financing needs. Profit on trade of goods or rent charged for asset use is the main basis for earning profit.
Non-interest banks must first take ownership of the asset and then either rent the asset or sell it on to the customer (on a cost plus basis with deferred payment) and they don’t give or receive interest, nor do they finance anything that is harmful to society.
Jaiz bank Non-interest banking is based on the ethical principles of fairness, transparency and objectivity.Their service is seamless, fast and secure when it come to financial service.
We shall be discussing on all the loan facility offer by the non interest Islamic bank in Nigeria and how to apply for it.
Reasons why Jaiz bank is known as Non-interest banking
The following are reasons why jaiz bank is called Non-interest banking in Nigeria
1.The Islamic bank Profit charged or rent charged do not compound.
2.Money is not a commodity; though it is used as a medium of exchange and store of value.
3.Bank takes asset risk by acquiring the asset before renting, selling or sharing in its returns
4. Profit on trade of goods or rent charged for asset use is the main basis for earning profit.
- Jaiz Home Finance (IjarawaIqtina)
Under Jaiz Home Finance, customers can now own a house… The Bank partners with its customer to jointly own a house identified by the customer.On the other hand, customer in turn agrees to lease the Bank’s share of the house while gradually buying that portion of the house owned by the bank.
Requirement to qualify for the home finance loan.
To qualify for home finance customers must meet the following requirement as adumbrated below.
1. Open to salaried persons.
2. Minimum equity contribution of 20%
3. Maximum tenor of 7 years
4. Monthly/Quarterly/Annual payment
Once you meet up with this requirement and contract is sign by both party, Rent paid by the customer gradually decreases as customer’s share of the house increases with buying out of the bank’s share.
2. Jaiz Auto Finance (Murabaha)
This is financed under Murabaha (cost plus) to enable salary account holders in public, private and other reputable organizations buy automobiles.
The bank buy the vehicle and sells to the customer with a reasonable markup (otherwise called profit) while payment for the automobiles is usually on monthly basis from the customer’s salary for a period of 3 to 4 years.
Requirement for Jaiz Auto Finance (Murabaha)
1.customer salary account must be domicile with jaiz bank or open salary account if you don’t have with them.
2.The auto mobile loan facility is Up to 48 months tenure
3.customer should be ready to pay 20% down payment
3. Jaiz Bank MSMES Financing (#JAIZLIFESTYLE)
The loan package is designed to finance Micro, Small and Medium Enterprises (MSME’s) they believe that MSMES is sine qua non to national development, poverty eradication and employment generation.
Jaiz Bank recognizes the role MSME’s play in empowering individual and growing the economy at large and it is because of this that the Bank makes financing MSMEs its major area of focus which is in line with our Mission of “Making Life Better Through Ethical Finance.
Requirement to access MSMES Financing loan
1. Your business must be in existence for at least one (1) year
2. The business must have run the account for atleast 3 months
3. The business must have an account with the Bank
4. The business must have a very good cash flow and turn over
5. The business should be registered with CAC (optional but strongly recommended
6. Satisfactory profitability history
7. Items/Product to be financed must relate to the core business of the customer
8. Business must have spent a minimum of 6 months in a licensed/registered/approved business premises.
9. Membership of relevant association/cooperative/union etc (if any)
10. Existing, Credible and Verifiable Customer base
11. Reliable Financial bank statement or records for at least 6 months
12. Favorable credit reports from relevant Institutions
4. Jaiz bank Working Capital Financing loan (Murabaha)
The loan facility is used to finance purchase of inventory or raw material for customers locally.customers need to provide a proforma invoice to the Bank after sourcing for the goods to buy, negotiating price, quality and quantity .
The Bank will then purchase the goods by making payment to the supplier, while the agent takes delivery of the goods. Payment of cost plus profit is made to the Bank by customer at the agreed future date.
Feature of Jaiz bank Working Capital Financing loan (Murabaha)
1. The bank finance the purchase of stock and inventories, such as spares and replacements, semi-finished goods and raw materials.The items must have sellable value
2. The price and tenure of the lump sum deferred payment must be agreed upon by the Bank and the customers
3.Customers must revealed both cost and selling price
4. The Bank appoints customer as an agent to purchase on its behalf
5. Jaiz Bank Project Financing/Construction loan (Istisna’)
The type of loan facility finance by this package include housing, building and construction of commercial and industrial building/projects and contracts awarded by the government, statutory or reputable private sector entities.
This is large industrial projects loan, where the customer approaches the bank and requests the bank to build and sell a project on deferred payment terms. The Bank then requests another party, known as a contractor, to construct the project.
The payment of the Bank’s selling price may be paid in full or by way of progressive payment as the case may be. Upon completion, the contractor will handover the project to the Bank or the Bank will authorize the contractor to deliver the project directly to customer.
1. The selling price is fixed and agreed by both parties; i.e. Customer and the Bank. It will remain unchanged until the end of the payment period.
2. Periodical installments (monthly/quarterly/half-yearly) are determined by the selling price and the payment period.
6. Equity-based Finance (Musharaka)
This kind of loan facility is a form of partnership between jaiz bank and its client whereby each party contributes to the capital of the partnership in equal or varying degrees either to establish a new project or share in an existing project.
7. Jaiz Wakala Investment
The loan package is designed to corporate and high net worth individuals (HNI) that need high returns with commensurate risk on their investment.The Bank will collect deposits from its customers and invest in a specific business venture to be agreed with the customer.
The Financial institution however acts as an agent to invest the depositor’s funds in an ethical manner. The Bank will indicate the expected profit rate to the customer over the agreed period for the investment.
The Minimum investment of N300,000,000.00 (three hundred million naira only) or its equivalent in any other currency acceptable to the Bank.
8. Lease to Own Finance (IjarawaIqtina)
This loan package Provide customers with short to medium term financing by way of leasing and finally acquiring items such as plant & machinery, property, equipment, heavy machinery, and other fixed assets.
It allow customers hire and subsequently purchase assets from the Bank. It is a form of rental for usage of equipment at a fixed agreed amount during the financing tenure..
9. Jaiz General Consumer Finance (Murabaha)
This kind of loan package enables customers acquire building materials, consumable goods and real estate with the flexibility of a monthly payment plan. The bank purchases the goods identified by the customer and sells same to the customer at cost plus profit. Payment is usually on monthly basis from the customer’s salary for a period of up to 36 months.
This loan facility is Open to salaried earner and they must have 20% down payment to enable customer acces the Jaiz General consumer finance loan facility.
10. Jaiz Household Appliances Finance (Murabaha)
This loan package is designed to enable custmers acquire household appliances ranging from refrigerators, freezers, furniture, kitchen appliances, laptop computer, TV set, etc.
It open to salary earner with flexibility of a monthly payment plan. The bank purchases the appliances identified by the customer and sells same to the customer at cost plus profit. Payment is usually on monthly basis from the customer’s salary for a period of up to 24 months.
11. Jaiz Ijara Service Corporate
It’s a loan facility designed to augment the company’s working capital to pay for salaries, professional services, labour and travels. It Provide customers with short-term financing to bridge cash flow shortfall and Fixed rental.
Under Ijara Service the bank will purchase/lease the asset from the service provider and enter into lease agreement with the customer in consideration for (Lease Rental)
12. Bonds and Guarantee (Wakala/Kafala)
One good thing about this loan -it’s designed to finance customers that are contractors of Government and major companies seeking for Advance Payment Guarantee, Performance Bond, Bid Bond etc) as guarantees .whereby the bank agrees to guarantee the liability of the applicant
How to apply for Jaiz Bank loan
To apply for Jaiz bank loan package, customer will need to fill loan application by visiting the banking hall promises.
2. Show comprehensive Profile of the Business/Owners
3. submit 12 months statement of account (where available)
4. show Re-Payment plan for the borrowed loan amount
5. Show proof of Cash flow projection with verifiable notes/assumptions
6. Current Certificate/License/Permit or Membership (where applicable)
7.Provide any other supporting documents as requested by the bank.