Nigerians who wish to receive finances from their local banks to implement some projects or bring their business ideas into life need to get acquainted with Jaiz Bank loan requirements. This financial institution has some unique funding opportunities that you need to know about.

Jaiz Bank loan requirements:

Non-interest banking is based on the ethical principles of fairness, transparency and objectivity. Non-interest Islamic banks don’t give or receive interest, nor do they finance anything that is harmful to society, such as drugs, punting, etc.

We should note that a Jaiz bank loan is not exactly a ‘loan’ in the full meaning of this word. Jaiz Bank PLC is a non-interest bank that began its operations in Nigeria in the year 2012. The institution prides itself in delivering excellent and innovative financial solutions to its customers. The institution is based on the principles of non-interest banking, an international phenomenon that is practised in nearly 70 countries worldwide. Non-interest banking is based on the ethical principles of fairness, transparency and objectivity. Non-interest Islamic banks don’t give or receive interest, nor do they finance anything that is harmful to society, such as drugs, punting, etc.

Jaiz Bank loans and other types of funding The institution offers various types of funding and business loans to its customers.

1. Working Capital Financing (Murabaha) Through this service, entrepreneurs get funding to assist with their day-to-day business needs, such as purchasing stock. The service works by you sourcing the goods and presenting a proforma invoice to Jaiz. Jaiz then pays the supplier directly, and you need to pay the money back at an agreed date.

2. Project Financing / Construction (Istisna) This one is ideal for large industrial projects, 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. Once the project is complete, the contractor hands over the project to the bank. Alternatively, the bank may ask the contractor to deliver the product to the customer directly.

3. Lease to Own Finance (IjarawaIqtina) This product is based on the contract of IjarahwaIqtina, which allows a customer to hire and purchase assets from the bank. The product provides 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.

4. Jaiz Ijara Service Corporate

This service augments the company’s working capital to pay for salaries, professional services, labour and traveling expenses.

5. Equity-based Finance (Musharaka)

This mode of financing is some sort of a partnership between the bank and its client, whereby each party contributes to the capital of the partnership in equal or varying degrees for the purpose of either establishing a new project or sharing in an existing project.

Requirements for getting funding from Jaiz Bank

You are an active customer of the bank You have a business or corporate account in Jaiz Bank.
You have a registered business or company.
You have a good Credit Bureau Report.
You have been trading for some time (one to three years should be enough).

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 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.

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 of 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 businesses 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)

Note. The specific documents you will be asked to provide, are unique to the credit facility sought.

Frequently asked questions (FAQs)

How long will it take before receiving funds from Jaiz Bank?

The time it takes to get funds, mainly depends on the credit facility in question. Smaller unsecured loans, tend to be disbursed the quickest.

How long do I have to pay back a Jaiz Bank loan?

Jaiz Bank credit facilities are both short and long-term. The repayment structure, for any funds advanced, is also flexible.

How much can I borrow from Jaiz Bank?

Your company turnover, is the primary factor that influences how much money — Jaiz Bank will lend to you.

What is a non-interest bank?

Non–interest banks or Islamic Banks, like Jaiz, do not give or receive interest. Instead, they make money through buying and selling assets, through leasing (and collecting rent payments) and through partnership (i.e. joint ventures on an agreed profit and loss sharing formula). Islamic banks cannot finance things like alcohol, tobacco and gambling. Partaking in very speculative or uncertain transactions, is also prohibited.

Does Jaiz Bank require collateral?

Jaiz Bank does not require collateral for all of its loan products. Nevertheless, when borrowing large sums of money — you will commonly be asked to pledge some kind of collateral.

Acceptable forms of security or collateral may include:

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)

How to apply for a Jaiz Bank Zero Interest business loan

You will need to fill in a loan application form and provide supporting documents, such as:

Your company’s profile Bank statements Details about the collateral you are willing to offer Proof of your address.
Your business plan Means of identification Cash flow budget Certificate of incorporation Audited financial accounts Jaiz Online JaizOnline is an internet banking platform that allows customers to keep tabs on their finances from wherever they are in a secured manner. Through this Jaiz Bank online platform, customers can: Transfer money between their own accounts View, download, and print their account statements Transfer cash to other accounts Perform third-party transfers through Jaiz.

Now that you know all about Jaiz Bank loan requirements and how to apply for financing from this institution, you can go ahead and expand your business with the help of this financial organization.