Jaiz Bank Business Loan – How do I apply for a Jaiz Bank Loan?
Jaiz Bank Loan – How do I apply for a Jaiz Bank Loan? With the economic crisis of the country, it is almost impossible to meet all your needs without having to borrow a loan. Jaiz Bank is an interest-free financial institution with a responsibility to help its clients through difficult times by offering affordable loan options.
Jaiz Bank is an Islamic or interest-free Nigerian bank. It is the first bank of its kind to be established in the country and headquartered in Abuja.
The bank started operations in 2012 – with branches in Abuja, Kaduna, and Kano. Since then, Jaiz started expanding nationally.
Jaiz Bank offers a combination of personal, SME, and corporate banking services.
Financing and types of business loans available through Jaiz Bank
Working Capital Financing (Murabaha)
Through this working capital financing facility, Jaiz Bank can help with the day-to-day cash needs of your business. Use this facility to fund purchases of inventory or inventory, among other things. The installation works with you purchasing goods and presenting a pro forma invoice to Jaiz. The bank pays the supplier directly. You must repay the borrowed money (cost plus profit) on an agreed date in the future.
Project / Construction Financing (Istisna’)
Jaiz Bank’s project financing facility is a great way to finance relatively large industrial projects. Here the bank agrees to build and sell the project in question – on deferred payment terms. The bank’s sale price will be “expense plus profit margin”. The refund can be adapted to your needs – you have the option of paying the full amount upon completion of the project or in installments.
Lease to own financing (IjarawaIqtina)
With this leased facility, Jaiz Bank allows you to rent or lease assets from the bank – with the option to buy the asset at the end of the lease term. Here, Jaiz is simply buying an asset for you – while making regular rental payments over time.
Jaiz Ijara Service Corporate
The Jaiz Ijara service provides businesses with a means of paying salaries, professional services, labor, travel, and other related working capital costs.
Share-based financing (Musharaka)
Jaiz Bank, with its facilities in Musharaka, works with your company. Under this partnership, each party will contribute equity or capital – to start a new project or expand an existing one.
Bonds and Guarantees (Wakala / Kafala)
These products are intended for companies that need to demonstrate credibility or the ability to meet their contractual obligations. Here, a bank guarantee can be issued by Jaiz Bank for things like prepayment, performance guarantees, and more.
Import financing (Murabaha)
Companies that import goods from abroad are the beneficiaries of this product. Under this import finance line, Jaiz has products such as Letters of Credit – which allow you to make business payments with ease and with less risk.
Export Finance (Murabaha)
Export financing, like import financing, is a form of business financing. Nigerian exporters and trading companies can take advantage of this product. Funds can be advanced in the pre-and post-shipment stage.
Eligibility for a jaiz bank business loan
Jaiz Bank has several financing options – suitable for large and small businesses.
Each financing option has its own set of conditions. Therefore, not all products are suitable for your business. That said, there are certain lending criteria that you must meet as a minimum, regardless of the financial product you are applying for.
In general, your business must be profitable to qualify for financing. Your company must also have a good credit history, especially if you want to get an unsecured loan. Secured loans give a little more importance to the collateral offered – rather than past credit history.
Other common loan requirements may (but not always) include:
- Registering a company or business – with the Corporate Affairs Commission (CAC)
- Have a business or business bank account
- Traded for some time (minimum 1-3 years)
- Must have a good report from the Credit Bureau – no unpaid obligations or bad debts
- Be an active bank customer
- While only registered businesses are eligible for a business loan with Jaiz, there are other options for unregistered businesses.
- Jaiz Bank also offers personal loan products and salary advances – which you can use for business purposes.
How to Apply for Jaiz Bank Business Loan?
Jaiz Bank accepts business loan applications from most bank branches. Before applying, it is good to be aware of the financing products on offer – this can be discussed with an agency loan adviser.
Most loan applications involve filling out an application form. This form asks for various details of your business, your company history, and the purpose of the loan. In addition to completing an application form, you will often be required to provide supporting documentation.
Jaiz will assess your company’s eligibility for funding – using the completed application form, supporting documentation, and all relevant publicly available information. The assessment is conducted by Jaiz Bank’s credit guidelines.
If your Jaiz bank loan application is approved, Jaiz will issue an offer letter. This offer letter lists all the conditions that must be met – before the money is paid out.
A frequently requested checklist of important documentation includes:
- Completed application form
- Company Profile
- Business plan
- Cash flow budget
- Bank statements (12 months)
- Audited financial accounts
- Certificate of incorporation
- Valid proof of identity (driver’s license, passport, voter card)
- Proof of address
- Warranty information offered (if any)
Note. The specific documents you must provide are unique to the credit limit requested.
Frequently Asked Questions (FAQs)
How long does it take to receive money from Jaiz Bank loan?
Fundraising time is mainly dependent on the line of credit in question. Smaller unsecured loans are usually paid out faster.
How much time do I have to pay off a loan from Jaiz Bank?
Jaiz Bank’s lines of credit are short and long-term. The repayment structure, for all advanced funds, is also flexible.
How much can I borrow from Banco Jaiz?
Your company’s revenue is the main factor that affects how much money Jaiz Bank will lend you.
What is an interest-free bank?
Interest-free banks or Islamic banks such as Jaiz do not give or receive interest. Instead, they make money by buying and selling assets, through leasing (and collecting rent payments), and through partnerships (ie, joint ventures based on an agreed-upon profit-and-loss-sharing formula). Islamic banks cannot finance things like alcohol, tobacco, and gambling. Participation in highly speculative or uncertain transactions is also prohibited.
Does Jaiz Bank require guarantees?
Jaiz Bank does not require collateral for any of its loan products. However, if you are borrowing large sums of money, you will usually be asked to provide some sort of collateral.
Acceptable forms of warranty or guarantee may include:
- Bonds of the Federal Government of Nigeria (FGN Bonds, FGN Eurobonds, FGN Treasury Bills, etc.)
- Obligations of State Governments or Federal Government Agencies of Nigeria
- Other Non-Sovereign Debt Instruments
- Physical assets, e.g. real estate
- Third-Party Guarantors (or Warranties)
How do I contact Jaiz Bank?
You can contact Jaiz Bank through any of the channels below.
- Headquarters Address: 73, Ralph Shodeinde Street, Kano House, Central Business Area, Abuja
- Phone number: +2347080635500. +2347080635555.
- Official website: jaizbankplc.com
- Email: [email protected]
Conclusion – Jaiz Bank Loan Code
With a variety of loan options to choose from, Jaiz Bank loan has made it easy for anyone to access loans in Nigeria. Visit the official website or visit one of the agencies to select a loan option that suits your needs.