Adedapo Adesanya
By Adedapo Adesanya
Nigeria’s foremost interest-free bank, Jaiz Bank Plc, has expressed its commitment to lessening the burden on micro, small, and medium enterprises (MSMEs) and its customers. The lender showed this with the introduction of some of its unique banking propositions that have been tailored to meet the needs of every Nigerian.
The bank, known for its Islamic banking foundation, which experienced a very positive performance in the first nine months of this year, said it would not be resting on its oars as it hopes to penetrate the market deeper with its line up of unique services.
One of the services introduced by the financial institution is the Working Capital Financing, which the bank uses to finance the purchase of inventory of raw materials for its customers.
Jaiz Bank explained that it does this by appointing the customer as its agent to source for the goods the customer wishes to buy, negotiate price, quality and quantity, and communicate the outcome of the negotiation to the bank via presentation of a proforma invoice.
After the completion of this procedure, Jaiz Bank will proceed to purchase the goods by making payment to the supplier, while the agent takes delivery of the goods. As a result, the payment of cost, plus profit is made to the bank by customer at the agreed future date.
The bank noted that its services also cover import and export finances that are ideal for both individuals and businesses. Under its import finance, the bank says it issues a letter of credit in favour of a beneficiary (exporter) on behalf of the importer (applicant) and to ease the process, the bank said it commits and accepts to pay against trade documents drawn in compliance with the terms established in the letter of credit.
While under the export finance facility, the bank noted that it takes upon itself to extend the export finance facility to the customer to purchase goods/raw materials against receipt of the inward letter of credit from the importer.
As an investment driven bank, with the Jaiz Premium Savings Account, the bank says it invests the depositors’ monies into financially-profitable, socially-desirable and commercially-viable business ventures which are legal and Shariah compliant.
As a non-interest bank, the gross profit made from the investment is distributed at the end of every tenure based on a pre-agreed profit-sharing ratio
For business and individuals transactions, the bank revealed that with JaizPay, a secure web payment, this will facilitate payments online use of debit cards issued by Nigerian banks. It also plugs in seamlessly with the existing websites of customers and acts as a bridge between the customer’s website and the bank.
User of automobiles are not left out through the Jaiz Auto Finance package, which allows the bank to purchase vehicle and sell to the salary account customers with a reasonable markup. Payment for the vehicle sold to the customer is usually on a monthly basis from the customer’s salary for a period of 3 to 4 years.
With Jaiz Household Appliances Finance, household appliances ranging from refrigerators, freezers, furniture, kitchen appliances, laptop computer, TV set among others can be purchased with the flexibility of a monthly payment for a period of up to 24 months under the Murabaha (cost plus) plan. The bank purchases the appliances identified by the customer and sells the same to the customer at cost plus profit.
Consumers under the Jaiz General Consumer Finance can acquire building materials, consumable goods and real estate with the flexibility of a monthly payment plan up to 36 months with Jaiz purchasing the goods identified by the customer and sells the same to the customer at cost plus profit.
Jaiz Bank reiterated that it is on course with its strategic vision of becoming the leading non-interest bank in Sub-Saharan Africa by 2022.
