Non Interest Loan Bank

Even while it might seem that there aren’t any banks in Nigeria offering Non-interest loans, this is inaccurate.

Most of these banks adhere to Islamic financial practices. You only need to pay back the amount you borrowed from the lending firm when you have an interest-free loan.

Typically, in order to be approved for some of these loans, you must have a very strong credit history. This essay contains all the information you need to know about interest-free loans in Nigeria.

Islamic Banking (No-Interest Loan)

Islamic banking, commonly referred to as sharia-compliant finance, denotes business dealings that are subject to Islamic law.

The two fundamental guiding principles of this kind of banking are the prohibition of consumer interest collecting and the distribution of profit and loss.

All forms of gambling and speculation are forbidden by Sharia. In addition to the prohibitions above, it also restricts collecting loan interest. Because of this, Islamic banking is distinct from the conventional banking system.

Where can I find interest-free loans in Nigeria?

 Jaiz Bank

The financial institution Jaiz Bank upholds and operates in conformity with Islamic banking principles. This bank is a publicly traded, national enterprise with well over 26,000 shareholders. The major goal of Jaiz Bank is to be the region’s undisputed authority on ethical banking.

As we would assume from a bank that operates in accordance with Islamic principles, Jaiz Bank also offers its clients no-interest loans. There is usually no interest charged on these loans, but there will surely be a loan duration. That is a repayment period. One or more of these loan options are:

Murabaha ( Household Appliance) ( Household Appliance) (Handy Appliance)

The loan for household appliances is a loan for consumer items. If you need to buy certain needs for your house, this financing option can help. A laptop computer, television, refrigerator, etc. may fall under this category. The repayment period for this loan is 24 months.

Read also about the Student Loan In Nigeria or about Zedvance Loan App

Finance a project: If you need money for a big project but don’t have it yet, Jaiz Bank can help. They’ll agree to complete the task on your behalf and then sell it to you for the cost plus profit.

Jaiz Bank also provides lease-to-own loans and working capital financing in addition to conventional loans.

 Taj Bank

TAJ Bank essentially adheres to the sharia financial theory, much like Jaiz Bank does. This means that they do not give or receive interest. They have three locations in Nigeria and provide the same services that conventional banks do. This covers items like ATM services, smartphone payments, and online purchases. In addition to their head office in Abuja, they also have a branch in Kano. These are a few of the loans they offer:

They developed this credit option, known as working capital plus cost (Murabaha), to help you finance the purchase of the assets and raw materials you want. Finding the raw material or asset source is all that is necessary, and once you do, the resource’s supplier will be reimbursed. TAJ bank then requests that you make a cost-plus-profit repayment at a future date and time that you both agree upon.