Jaiz Bank Review - Halal Finance Products

A profit-sharing savings account run on the Mudarabah (partnership) contract. The depositor is the capital provider (rabb-ul-mal) and the bank is the fund manager (mudarib) that invests pooled balances in Shariah-compliant, socially responsible ventures. Gross profit is distributed monthly based on the customer's average balance and a pre-agreed profit-sharing ratio. Comes with instant Verve or Mastercard debit card, internet, mobile and USSD banking, cheque and dividend warrant lodgment up to N2 million face value, and a free monthly e-statement. Suited to individuals who want their savings to earn a halal return while staying accessible.

Jaiz Bank's corporate financing shelf, summarised. Trade Finance covers import (bank issues a letter of credit and resells imported goods at cost-plus on deferred terms) and export. Project/Construction Finance uses Istisna, where the bank commissions construction of a project and sells it to the customer at cost plus profit. Equity-Based Finance uses Musharaka, a true capital partnership sharing profit by ratio and loss by contribution. Lease To Own (Ijara wa Iqtina) and Jaiz Ijara Service Corporate cover plant, machinery, equipment and working-capital service needs. Bonds and Guarantees (Wakala/Kafala) provide advance-payment guarantees, performance and bid bonds. The Wakala-based Jaiz Investment Account for corporates and high-net-worth clients requires a minimum of N300 million.

Financing across the agricultural value chain for smallholder farmers, agro-processors, cooperatives and agribusinesses. Jaiz uses three contracts depending on need: Murabaha (cost-plus) for inputs, raw materials, aggregation and export commodities; Ijara (lease) for machinery, equipment and factory expansion; and Salam (forward sale with upfront payment for future delivery) for crop production. Tenor is short-term of 6 to 12 months or medium-term up to 36 months, matched to the enterprise's gestation and cash-flow cycle, with financing limits based on need and repayment capacity. Jaiz notes partnerships with development institutions such as BOA, CBN, NIRSAL and SMEDAN, and NIRSAL Credit Risk Guarantee where applicable.

Jaiz Bank's financing for micro, small and medium enterprises and their working-capital needs. The MSME line funds businesses that have traded at least a year, run a Jaiz account for at least three months and can show cash flow; the Working Capital line uses an agency-Murabaha where the bank appoints the customer as its agent to source goods, buys them, and the customer repays cost plus profit at a future date. Jaiz also channels government and development-finance intervention schemes through these products, including a BOI Intervention Fund of N3 billion, a SMEDAN Matching Fund of N500 million, a DBN Intervention Fund of N5.4 billion and the BRAVE Women programme. Aimed at traders, retailers and small manufacturers.

A services-financing product for customers who need to pay for things like school fees, rent, hospital and medical bills. Rather than lending cash, Jaiz Bank procures the service and the customer pays for it on a deferred basis under an Ijara (service lease) arrangement, with fees remitted directly to the service provider such as the school or hospital. Tenor runs up to 12 months and salary domiciliation is required. It is the closest thing Jaiz offers to a dedicated education-finance product, though it also covers rent and healthcare, and is aimed at salaried customers facing large, time-bound service costs.

A renewable-energy asset finance product for solar bundles (panels, inverters, batteries and accessories), structured on Bai-Muajjal (deferred-payment sale). Jaiz negotiates directly with major solar vendors, buys the equipment the customer needs and resells it on an instalment plan. Terms are tiered: individuals put down 10% and can finance up to N10 million over a maximum 36 months at a stated 30% per annum mark-up; SMEs put down 10% and finance up to N20 million over 24 months at 30%; corporates put down 20% and finance up to N500 million over 36 months at 28%. All tiers require Takaful cover on the asset and, for individuals, salary or income repayment. This is one of the few Jaiz products with fully published pricing.

A pair of related Murabaha consumer products for salaried customers. Jaiz Household Appliances Finance funds items such as refrigerators, freezers, furniture, cookers, laptops and TVs on a monthly plan of up to 24 months, with discounts from the bank's approved vendors. Jaiz General Consumer Finance funds building materials, consumable goods and real estate items; the product page describes tenor of up to 36 months while its own feature list states a 24-month maximum. In both, the bank buys the goods the customer identifies and resells them at cost plus a disclosed margin, repaid monthly from salary with salary domiciliation.

Vehicle finance for salaried customers in public and reputable private organisations, structured on Murabaha (cost-plus sale). Jaiz Bank buys the vehicle the customer selects and resells it to them at a disclosed cost-plus-profit price on deferred terms. Repayment is monthly from the customer's salary over 3 to 4 years, with a maximum tenor of 48 months, and salary domiciliation is required. Marketed on an easy application process. Aimed at employed buyers who want to spread the cost of a car without an interest-bearing auto loan.

Jaiz Bank's home ownership product, structured as Ijara Muntahiyya Bittamleek combined with a diminishing partnership. The bank and the customer jointly own a house identified by the customer; the customer leases the bank's share and pays rent while gradually buying out that share, so the rent falls as the customer's ownership rises until they own the property outright. Jaiz requires a minimum equity contribution of 20%, offers a maximum tenor of 7 years, and accepts monthly, quarterly or annual payments, typically with salary domiciliation. Aimed at salaried buyers who want to own a home without an interest-bearing mortgage.

Jaiz Bank issues naira debit cards (Verve, with Mastercard also available) linked to active current or savings accounts. The Jaiz Verve Card carries a three-year validity, EMV chip and PIN security, two-factor authentication for online payments and contactless capability. Published transaction limits are N150,000 per day at local ATMs, N2,500,000 at local POS terminals and N2,000,000 for local web transactions. It works nationwide across ATMs, POS and online merchants and can pay for select global subscriptions including Microsoft, Netflix, Google Play, Spotify, Starlink, Prime and Uber. A separate Visa Dollar Card is offered for the domiciliary account. Cards are requested at a branch and activated at any branch or Jaiz ATM.

A foreign-currency account operated in US Dollars, Pounds Sterling or Euros for customers with international transactions. It is funded through cash deposits, inflows and wire transfers, allows international transfers and payments, and gives access to funds abroad via a Visa Dollar Card. Jaiz states zero cash withdrawal and account maintenance charges, no limit on the number of monthly withdrawals, and foreign-currency withdrawals processed at designated branches. The account shows as view-only under the Special Account section of the mobile app. Aimed at importers, exporters, families receiving remittances and anyone needing to hold or move hard currency.

Jaiz Bank's fixed-tenure investment deposit, marketed as the Jaiz Term Deposit (JTD) and Jaiz Premium Savings Account (JAPSA). It takes a lump sum of at least N500,000 for a chosen tenure between 30 and 360 days under the Mudarabah contract: the depositor is the investor, the bank is the fund manager, and gross profit is distributed monthly on a pre-agreed profit-sharing ratio. Higher profit rates are offered for longer tenures, and an investment certificate is issued for each placement. Aimed at customers with idle cash who want a defined-horizon halal return rather than an instant-access account.

A children's savings account opened in trust for a minor by a parent or guardian, who remains the primary operator until the child reaches adulthood. Like the adult savings product it runs on the Mudarabah partnership contract, so the child's balance earns a monthly profit-shared return rather than interest. Features include monthly profit payment, an instant Verve debit card, cheque and dividend warrant lodgment up to N2 million face value, internet, mobile and USSD banking and a free monthly e-statement. Jaiz positions it as a way to build savings habits and financial responsibility early.

Jaiz Bank's everyday transaction account, taken on the principle of Qard (a demand loan from the depositor to the bank). The customer authorises the bank to use the funds in its operations while the bank guarantees the full principal on demand, so the account pays no profit. It comes with a personal cheque book, instant Verve or Mastercard debit card issuance, internet, mobile and USSD banking, cheque and dividend warrant lodgment, and a free monthly e-statement. Aimed at salary earners, traders and businesses that need day-to-day payments rather than returns. Opened online at account.jaizbankplc.com or at any of the bank's 51 branches.