The Alternative Bank Alternative Asset Finance (Ijarah)
Islamic Car Financing in Kaduna
Alternative Asset Finance is AltBank's Ijarah lease line for personal asset acquisition: cars, household equipment, machinery and even homes, financed 'without the hefty upfront costs' so customers can 'conserve capital for other lucrative ventures'. The bank purchases the asset and leases it to the customer, who uses it while paying rentals. It is the retail sibling of the SME-focused AltLease facility, which for business assets carries published terms of up to NGN 20,000,000 per obligor over 24 months. Retail-side rates and tenors are quoted individually through the app or a relationship manager.
Alternative Asset Finance earns points for doing what most Nigerian bank product pages will not: naming its contract. Ijarah with real bank ownership is among the most defensible structures in Islamic retail finance, and AltBank applying it across cars, equipment and even homes gives customers one coherent framework instead of a maze of sub-products. The economics deserve scrutiny. AltBank publishes 30% per annum for its SME lease line, and if retail pricing lands anywhere close, a 3-year car lease will cost dramatically more than Lotus Rides' unpublished but negotiable Murabaha, so quotes from both banks are essential. The honest summary: best-documented structure in the market, potentially the priciest execution. Negotiate accordingly.
Pros
- Contract named on the page: genuine Ijarah with the bank owning the asset
- Covers vehicles, equipment and household assets in one product line
- Low upfront cost positioning preserves customer capital
- Signed annual ACE certification covers the product
- Takaful cover used across the bank's financing stack
Cons
- No retail rate card; the published SME lease equivalent runs a steep 30% per annum
- Bank ownership during the lease means usage restrictions until transfer
- Short tenors by segment standards if the 24-month SME pattern extends to retail
- Requirements page for retail asset finance is thin on documentation detail
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Product Details
Structure
ijara
Vehicle Types
Cars, Household equipment, Machinery, Homes (also covered by dedicated Home Finance)
Down Payment
Not published for retail; SME AltLease requires 30% commitment deposit
Terms
Retail tenors quoted individually, SME sibling AltLease capped at 24 months
Max Amount
Not published for retail; SME sibling capped at NGN 20,000,000 per obligor
Profit Structure
Ijarah rentals on bank-owned assets; retail rates unpublished
The Alternative Bank in Kaduna
The Alternative Bank offers Islamic car financing relevant to Kaduna residents using a ijara structure. Unlike a conventional car loan, the bank holds or trades ownership of the vehicle and earns rent or profit on that ownership rather than interest. The minimum deposit is Not published for retail; SME AltLease requires 30% commitment deposit. The Alternative Bank operates across Nigeria, so Kaduna residents have full access to this product.
Our Take on The Alternative Bank
The Alternative Bank is the most transparent operator in Nigerian non-interest banking and its most digitally ambitious. A decade as Sterling's non-interest window gave it operating maturity before the July 2023 standalone licence, and the FY2024 numbers (N307.5bn assets, N10.08bn profit after tax) show a real bank, not a branding exercise. Its distinguishing habits are publishing what competitors hide: SME markup rates, Hamish percentages and takaful costs sit on public pages, and the ACE compliance report is signed, FRC-numbered and printed in the audited accounts. The product set is imaginative, spanning Hajj savings plans, diaspora home finance with managed properties, rent advances and education trusts with Takaful cover. The caveats: published pricing on leases runs steep at 30% per annum, retail products often name neither contract nor cost, several pages still carry Sterling-era copy, and roughly 20 branches means cash-dependent customers will feel the gaps. For app-comfortable Nigerians and SMEs that value verifiable terms, AltBank is the strongest execution of ethical banking in the market today.
How The Alternative Bank Works
Onboard through the app
Open AltSave, AltCheck or AltCurrency from the AltBank app or web platform with zero minimum balance; business customers open a corporate account, which most financing lines require for at least one month before facility applications.
Apply for asset-backed financing
Choose the product built for your need: AltBiz for stock and equipment, AltLease for machinery and vehicles, Home Finance for property up to N80m, AltRent for annual rent, EduFund for school bills. Submit invoices from approved vendors; the bank pays the supplier, never loose cash.
Pay fixed markups or rentals
Costs are fixed at signing: published rates run 9% pa (SWAY AG) to 30% pa (AltLease), with commitment deposits of 5-30% and takaful cover of 2-3% where applicable. Repayment cycles flex from monthly to 180 days on business lines.
Take ownership at term end
Murabaha-style purchases are yours from delivery with the bank holding security; Ijarah assets transfer to you when rentals complete. The ACE certifies annually, in a signed published report, that products and processes complied with Islamic finance principles.
Financing Structure
The Alternative Bank operates a fully non-interest balance sheet: deposits are guaranteed (current accounts) or profit-sharing (savings), and the asset side holds sukuk, commodity inventories, gold bullion, trade finance and lease assets rather than interest-bearing loans. Financing products use markup and lease structures: AltBiz pays suppliers directly for raw materials, stock or equipment which the customer takes at a fixed markup (15.5% flat pa), functioning as Murabaha; AltLease and Alternative Asset Finance are Ijarah leases where the bank retains ownership of the financed asset and the customer pays rentals (30% pa on the SME line) with ownership transferring at term end; SWAY AG and Social Mobilization finance agricultural inputs and trade stock at 9-9.5% pa fixed markups; and commitment deposits (Hamish, 20-30%) plus takaful cover replace conventional collateral and insurance mechanics. Because obligations are fixed sale prices or rentals rather than accruing interest, arrears cannot compound the debt.
In-Depth Analysis
The Alternative Bank's history is the longest apprenticeship in Nigerian non-interest banking. Sterling Bank obtained a non-interest window licence in January 2014 and ran it as Sterling Alternative Finance (SAF) for nearly a decade, building products, an ACE bench and a customer base inside a conventional parent. When Sterling restructured into Sterling Financial Holdings in 2023, the window became a bank: the CBN issued a standalone non-interest licence in July 2023, and that October the AltBank brand launched with simultaneous events in Lagos, Abuja and Kano, the first synchronized multi-city bank launch in Nigeria. The bank operates from 239 Ikorodu Road, Ilupeju, Lagos, as one of three Sterling HoldCo subsidiaries.
The financial record since standalone status is strong. FY2024 audited accounts show total assets of N307.5bn against N182.7bn a year earlier, gross earnings of N35.76bn, and profit after tax of N10.08bn, roughly quadruple the prior period's N2.39bn. The balance sheet composition is a useful Shariah artifact in itself: N65.8bn of sukuk, N27.1bn of commodity stocks, N2.5bn of gold bullion, N41.3bn of financing assets and N4.2bn of Musharakah investments, with no interest-bearing loan book. Distribution is deliberately light: about 20 branches (including 5 co-locations), 4 'Wakeel' agent shops, 34 kiosks and 65 Altbox points at end-2024, with the app carrying the service load.
The product shelf is the most creative in the segment. Retail: AltSave (zero-minimum Mudaraba-style savings), AltCheck (no-CoT current account), AltCurrency (multi-currency domiciliary), Youth Banking, AltPilgrimages (target-year Hajj and Umrah savings with bundled packages), AltTrust (education trust with Takaful cover on death or total permanent disability), AltRent (annual rent paid upfront, repaid monthly), EduFund (short-term education expenses) and Home Finance up to N80m over 10 years, with a diaspora variant adding bank-selected property managers. Business: AltBiz (N5m working capital and equipment at 15.5% flat pa), AltLease (N20m equipment Ijarah at 30% pa), Structured Trade and Commodities Finance, agriculture anchors, SWAY AG (N20m at 9% pa targeting women and youth) and the Social Mobilization Facility (N250,000 at 9.5% pa through market associations), plus the Wakeel agent banking network.
Shariah governance is AltBank's clearest institutional advantage. The Advisory Committee of Experts comprises Shaykh AbdulKader Thomas (chairman; 35+ years in Islamic finance, US regulatory pioneer for Islamic mortgages, Sterling's ACE since 2013), Hon. Justice AbdurRaheem Ahmad Sayi (Qadi of the Lagos State Independent Shari'ah Panel) and Shaykh Abubakar Muhammad Musa (SHAPE Knowledge Services, ex-ISRA researcher). Appointments are board-endorsed, and the committee's certification of compliance, with each member's FRC registration number, is printed in the audited annual report, a disclosure standard neither Lotus, TAJ nor Summit currently meets. The counterpoint is uneven product-level documentation: AltRent, EduFund and AltPilgrimages name no contracts publicly, and residual 'Sterling Alternative Finance' copy on live pages signals sloppy content governance.
Our assessment: AltBank is the segment's transparency leader and its most complete digital execution, with pricing honesty on SME products that should be the regulatory baseline. The costs it publishes are not always cheap, 30% per annum leasing prices real Nigerian SME risk, but a knowable price beats a negotiable mystery. Retail customers get inventive products with weaker documentation, so the discipline is to demand contract names and total repayment figures in writing. Between its audited growth, published ACE reporting and genuinely differentiated products for diaspora, pilgrims and women in agriculture, AltBank has converted the Sterling apprenticeship into the most modern ethical bank in Nigeria.
Shariah Compliance Details
- Standalone CBN non-interest banking licence granted July 2023; previously operated as the Sterling Alternative Finance window from January 2014 (verified via bank investor relations page and Sterling HoldCo reports, 2026-08-04)
- ACE members published with FRC registration numbers in the FY2024 annual report: Shaykh AbdulKader Thomas (Chairman, FRC/2023/PRO/AUDITCOM/002/005809), Hon. Justice AbdurRaheem A. Sayi, Shaykh Abubakar M. Musa; signed ACE Shariah compliance report included in audited accounts (report crawled 2026-08-04)
- NDIC-listed insured non-interest bank, address 239 Ikorodu Road, Ilupeju, Lagos (NDIC register checked 2026-08-04)
- FY2024 audited financials: total assets N307.5bn, gross earnings N35.76bn, PAT N10.08bn; asset mix includes N65.8bn sukuk, N27.1bn commodity stocks, N2.5bn gold bullion, no interest-based lending (annual report, 2026-08-04)
How The Alternative Bank Compares
Against Jaiz Bank, AltBank trades branch density and listed-company history for digital execution and pricing transparency; Jaiz remains the scale leader with the larger network. Against Lotus Bank, the contrast is stark and instructive: Lotus fields a deeper financing shelf and a corporate contract suite (Istisna, Salam) that AltBank does not advertise, but publishes zero pricing, while AltBank puts markups, deposits and insurance costs on public pages and prints a signed ACE report in its accounts. Lotus is the negotiator's bank, AltBank the comparison shopper's. Against TAJBank, AltBank offers stronger product innovation and disclosure; TAJ competes on northern distribution and deposit gathering. Against Summit Bank, the February 2025 regional newcomer, AltBank is an established institution with 10x the operating history, though watchers should note Summit's ex-Jaiz leadership pedigree. AltBank's honest weaknesses in the comparison: the priciest published lease rates in the segment and the thinnest physical network of the national players.
Nigeria's oldest and largest non-interest bank with unmatched branch coverage; choose Jaiz for physical distribution, AltBank for digital experience and published pricing.
Strong northern deposit franchise; AltBank counters with product innovation, diaspora offerings and signed ACE reporting.
Deeper financing shelf and corporate contract suite but publishes no rates; AltBank's transparency makes it the easier bank to evaluate remotely.
Brand-new regional licensee with ex-Jaiz leadership; AltBank offers proven products and audited results today.
Bottom Line
AltBank converted a decade as Sterling's Islamic window into Nigeria's most transparent and digitally complete non-interest bank: published SME pricing, a signed ACE report in the audited accounts, and products (Hajj savings, diaspora home finance, 9% agriculture finance) nobody else offers. Accept the thin branch network, scrutinize the steep lease pricing, and demand contract names on the retail products, and it is the easiest halal bank in Nigeria to trust with open eyes.
Read full The Alternative Bank reviewShariah Compliance & Oversight
The Alternative Bank's Advisory Committee of Experts (ACE) is published both on the website and in the audited 2024 annual report, which includes a signed ACE Shariah compliance report. Members: Shaykh AbdulKader Thomas (Chairman; 35+ years in Islamic finance, Shariah board experience at Bank Muscat Meethaq, Sterling Bank Nigeria since 2013 and University Bank USA; secured the first US regulatory approvals of Islamic mortgage instruments), Hon. Justice AbdurRaheem Ahmad Sayi (Qadi of the Independent Shari'ah Panel of Lagos State, principal partner of A.A. Sayi & Co.) and Shaykh Abubakar Muhammad Musa (Sharia advisor at SHAPE Knowledge Services Kuwait, former researcher at ISRA Malaysia, LLB Shariah from Al-Imam University Riyadh). ACE appointments are endorsed by the board and the committee certifies annual compliance with Islamic finance principles, with FRC registration numbers published for each member.
2026-08-04
Why It's Halal
The product page names its contract: Ijarah. The bank buys the car or equipment, retains ownership, and leases it against rentals, meaning AltBank carries genuine asset risk and the customer pays for usage rather than for money. This avoids riba structurally: there is no principal accruing interest, and a late rental cannot compound into a bigger debt the way loan interest does. Takaful-based cover is used across the bank's financing products per its SME documentation. The Advisory Committee of Experts (Shaykh AbdulKader Thomas as chairman, Hon. Justice AbdurRaheem Ahmad Sayi, Shaykh Abubakar Muhammad Musa) certifies the bank's products and processes in a signed annual report. The caution flag: retail pricing is unpublished, and AltBank's SME lease equivalent carries a 30% per annum markup rate, which is steep; assume retail Ijarah pricing is in that neighborhood until quoted otherwise, and compare against Lotus Rides before signing.
Regional Availability
The Alternative Bank serves all of Nigeria
✓ Available nationwide including Kaduna
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Compare With Other Options in Kaduna
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NationwideFrequently Asked Questions
What is The Alternative Bank Alternative Asset Finance (Ijarah)?
Why is The Alternative Bank Alternative Asset Finance (Ijarah) considered halal?
Is The Alternative Bank Alternative Asset Finance (Ijarah) available in Kaduna?
What Shariah oversight does The Alternative Bank have?
What financing structure does The Alternative Bank Alternative Asset Finance (Ijarah) use?
How do I apply for The Alternative Bank Alternative Asset Finance (Ijarah) in Kaduna?
Which providers have a published Kaduna presence?
How do Kaduna businesses access Islamic financing?
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Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.