Islamic finance is non-interest financing that operates on ethical or Islamic principles including interest avoidance in debt and exchange contracts.
Islamic finance does not fund unethical ventures such as, alcohol, tobacco, ammunition manufacturing and adult entertainment institutions and also prohibits any form of gambling.
Islamic finance is provided in Nigeria by Islamic banks and other financial institutions that operate under Islamic principal.
Islamic finance loan operates in profit and loss sharing basis. In essence, Islamic finance operates in accordance with Sharia law, which prohibits usury and speculations.
Islamic Finance Lending Institutions in Nigeria
- SukFin
- Jaiz Bank
- Taj Bank
- Lotus Bank
- Alternative Bank Ltd
SukFin
SukFin is Fintech that provides a free and easy ways SMEs in Nigeria can research and find finance for their businesses.
The company deploys technology and its expertise to match SMEs with a variety of lenders — giving access to a number of funding products across Nigeria. It’s very easy to apply and get funding provided you meet the requirements.
How it works
If you tell them how much money you need and the project you need it for, they will match your requirements with lenders . They will get your loan approved and your business financed
SukFin understand that getting finance for your business in Nigeria can be incredibly frustrating. It is upon this foundation that SukFin was founded — to make it easy for business owners to find the right finance products.
SukFin works with a number of lenders across the whole business funding market. With help SukFin, you can find unsecured loans, invoice financing, equipment leases, startup loans and more.
SukFin — Every type of finance for every kind of business
The minimum funding is N100,000
Visit their website for more information and to apply: https://www.sukfin.com/apply/
Jaiz Bank
Jaiz Bank is Nigeria’s first CBN licensed non-interest financial institution offering Islamic compliant loans for multiple purposes in Nigeria.
Jaiz bank takes asset risk by acquiring the asset before renting, selling or sharing in its returns. The bank is compensated through profit on trade of goods or rent charged for asset use rather than charging interest on the loan. 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).
The general principles of Islamic finance include the prohibition of usury or interest (riba), excessive uncertainty (gharar) and gambling (maysir), as well as risk and profit sharing between involved partners. Additionally, assets and investments can only come from, and be made in, Shariah compliant activities, and transactions must be backed by tangible, identifiable underlying assets.
Requirements
Duly completed Loan application form
Duly completed personal guarantee form
Board resolution for the Loan (for companies)
One passport photograph of each signatory.
Identification document for each signatory e.g. International Passport, National ID Card, National Drivers Licence e.t.c. Originals will be required for sighting.
Copy of utility bill issued within the last three months. Originals will be required for sighting.
Two reference forms duly completed by an individual or corporate body maintaining a current account with a bank in Nigeria. (Applicable to current account only)
Advantages
Interest-free
Flexible loan conditions
Disadvantages
Operates in profit-sharing basis — profit from the business will be shared with the bank
Requires much documentation
Visit the bank's website for more information and to apply: https://jaizbankplc.com/