Are you a salary income earner, self-employed, or business owner asking questions on how to apply for Jaiz Bank Loan using code, mobile apps, or other online banking platforms?
As you may have noticed Jaiz bank operates under the Islamic banking rules, which means they are not allowed to charge interest or give one. instead, they would need to find other ways to make money.
Luckily, there are several ways to make money and one of those ways is buying and selling properties or enters into a business relationship with another on an agreed profit and loss formula.
Therefore, if you are banking with Jaiz Bank, you can enjoy privileges you may never see with other commercial banks in Nigeria. Like every bank, customers and non-customers can access personal and business loan facilities from jaiz bank.
This article will let you know some of the best loan products available plus how you can apply at Jaiz Bank.
Jaiz Bank Loan For Self employed, Employee and Business Owners
1. Jaiz Home Finance (Ijarawalqtina)
Jaiz Home Finance, otherwise known as (Ijara wa lqtina) is a loan product for all salaried persons who want to enter an agreement to purchase or own a home.
Under jaiz home finance, the customer and Jaiz bank will come into a binding contract to jointly own a house property identified by the customer. The customer in turn agrees to lease the Bank’s share of the house while gradually paying back the portion of the house owned by Jaiz Bank to become a sole owner.
As the customer pays rent, his or her share gradually increases while the bank’s share decreases. Once payment has been completed, the customer then becomes a legal owner of the home.
Do note that there is collateral on the property with the property being collateral itself. When you fail to make good on the agreement, the bank can sell the property to reclaim back the cost plus profit. If there are never leftover, you get them.
Jaiz home finance has a maximum tenor of 7 years and payment can be monthly, quarterly, or annually. Customers must put down at least 20% of the cost of the home while the bank completes the rest.
2. Jaiz General Consumer Finance (Murabaha)
Jaiz General Consumer Finance
(Murabaha) is a loan product that allows salary income earners to acquire real estate, building materials, or consumable goods with a good repayment plan.
Under Islamic banking, this type of arrangement is known as Murabaha (cost plus). It is simply saying that Jaiz bank will make purchases on behalf of the customers and then sell to the customer for a profit. Although, it will be on credit or loan as you may rather call it.
Payment is usually on a monthly basis from the customer’s salary for a period of up to 36 months. The customers are expected to make a minimum down payment of 20%.
3. Jaiz Auto Finance (Murabaha)
Jaiz Auto Finance (Murabaha) is almost the same as previously mentioned except that it revolves around vehicles. Therefore, if you are a salaried income earner and need to get an automobile but you do not have enough money, then you can apply for Jaiz bank auto finance.
After the customer has come into an agreement with the bank, the bank now buys the vehicle and sells it to the customer for a profit. The customer can now pay back the cost of the loan which could take up to 3 to 4 years. A down payment of 20% will be required to finalise the loan.
4. Ijara Service
Sometimes, customers may have no choice but to borrow, especially when their payday is still some not around the corner. With Jaiz Ijara Service, customers will be able to access quick loans.
Under this arrangement, the bank will pay for whatever the reason for the loan and the customer can then pay back gradually, thanks to their well-structured repayment plan.
Only people earning salaries can apply for this type of Jaiz Bank Loan and must be ready to bring at least 20% of the total cost while the bank completes the rest. Customers can get up to 12 months to pay back the loan amount, being the tenor of the loan.
5. Jaiz Household Appliances Finance
Whatever home appliances you want to purchase, you can now use the Jaiz Household Appliances Finance. The home appliances could be a television, sound system, freezer, air conditioner, kitchen appliances, laptop, standing fan, etc.
Jaiz bank purchases any item identified by the customer who must be a salary income earner and then sells back to the customer at cost plus profit. After a successful binding agreement, payment is made on a monthly basis from the customer’s salary account for a period of up to 24 months.
Like most finance options, customers are expected to make a minimum down payment of 20%.
6. Jaiz Working Capital Financing
Sometimes, businesses face issues such as how to get the needed cash for business for inventory or raw material for production purposes. When this happens, the customer has several options and among them is applying for Jaiz Working Capital Financing.
After successful application, the bank then appoints the customers as its agent to source for the goods he or she wishes to buy and negotiate all details and then communicate the outcome of the negotiation to the Bank via the presentation of a proforma invoice to the Bank.
If satisfactory, the bank will then contact the suppliers and make payment while the customer or agent takes delivery of the goods. Do note that customers are expected to pay the cost plus profit at the agreed repayment plan. The basic feature is item or inventory must be sellable.
Business owners and self-employed customers can apply for this loan type.
7. Equity-based Finance (Musharaka)
Equity-based Finance (Musharaka) is when a customer and bank form a partnership whereby each party contributes its own money to a project or business.
Profit will be shared according to the free agreed profit sharing ratio while loss according to how much money invested by the parties. Each partner has the right to participate in the management of the business
Equity-based Finance (Musharaka) is one of the best ways to secure funds for a business especially when you have a business idea that requires big finance.
8. Lease to Own Finance (IjarawaIqtina)
If you have a business that needs some assets but you do not have enough to get it, you can apply for a Lease to Own Finance from Jaiz bank.
This type of jaiz bank business loan allows customers to hire and subsequently purchase assets from the Bank. It provides customers with short to medium term financing by way of leasing and finally acquiring items such as property, plant & machinery, equipment, heavy machinery, and other fixed assets.
Repayments can be made monthly, quarterly, or half-yearly and it is available to all customers with substantial and regular income.
9. Project Financing/Construction (Istisna’)
Project Financing/Construction (Istisna’) is a type of finance that customers request Jaiz bank to construct and to sell the project to be constructed at the Bank’s selling price.
The bank will consider the amount spent on the project and also put its own profit which the customers are to pay upon completion of the project. The payment can also be made by way of progressive payment as the case may be.
The bank does most of the work, finds a contractor who will handle the project and upon completion, the contractor will hand over the project to the bank or the customer directly if the bank authorizes it.
Type of development under Project Financing includes housing, building, and construction of commercial and industrial buildings/projects and contracts awarded by the government, statutory or reputable private sector entities.
10. Jaiz Bank MSMES Financing
The Micro, Small, and Medium Enterprises are also not left behind, they can also receive loans that could help to improve the performance of the business.
The major requirements to get this type of business loan from Jaiz Bank are – business must have been operating for at least one year, good cashflow and turnover, account with Jaiz bank account, and must be registered with Jaiz bank.
Business owners who wish to apply for Jaiz Bank MSMES Financing must provide the necessary documentation. Documentation depends on the nature of the business.
11. Jaiz Ijara Service Corporate
Jaiz Ijara Service Corporate is another financing option given to companies that are struggling to provide working capital to pay for professional services, labour, travels, and salaries.
The bank will purchase/lease the asset from the service provider and enter into a lease agreement with the customer in consideration for Lease Rental.
How To Apply For Jaiz Bank Loan
Customers should understand that most business loans come with minimal or stressful documentation which can be understandable considering the risks involved.