NON-INTEREST FINANCE

Ethical finance based on the core principles of fairness and social justice.

A leasing contract, also known as Ijarah can be used for the financing of a car or other assets. The bank buys the customer’s specified car and then leases it directly to the customer for the agreed period. At the end of the lease period, the customer is contracted to buy the car from the bank, as agreed at the inception of the contract.

This differs from conventional car financing as the bank buys the car and takes ownership and the associated risk.

nif car financing

Non-interest banks can provide finance for the purchase of commodities and select goods using a cost plus contract, also known as Murabaha. The customer approaches the bank and identifies the goods for which financing is needed. The bank then buys the said goods and sells them immediately onto the customer at a new price which is the original cost plus a profit mark-up for the bank. This new price, agreed with the customer, is binding and cannot change. The bank then offers the customer a deferred payment, whereby the customer is given an agreed period of time to pay the bank back, e.g. 12 months.

This differs from conventional goods financing as the bank has to buy the goods first before it can sell it to the customer. In addition, the bank cannot make any additional profit if the customer is late in paying back the agreed amount. It is important to note, to deter customers from paying late the bank may charge a penalty fee to the customer as long as this fee is given to charity and not retained by the bank.

nif goods financing

Non-interest products are available through several market operators in Nigeria. For more information on each product, please contact the market operator directly. A few products are highlighted below:

NIFI Logo

The CBN requires banks offering non-interest products to include the NIFI logo on their marketing literature

CORNERSTONE INSURANCE Products
  • Al-Jamaat Osra Scheme (Takaful Group Family Scheme)
  • Al-Jamaat Tarbiya (Takaful Group Education Scheme)
  • Al-Manzil Takaful (Property Guard Takaful Scheme)
  • Al-Naar wa Sirqah Takaful Scheme (Fire & Theft Takaful Scheme)
  • Baytu Surur Plan (Takaful Mortgage Protection Plan)
  • Bida'at Naqi (Halal Goods In Transit Scheme)
  • Hajj & Umra Takaful Plan
  • Halal Mutual Trust Plan (Halal Esusu Plan)
  • Halal Pilgrimcare Scheme
  • Mudarabah Plan (Halal Investment Plan)
  • Naatijatu Daynu Plan (Halal Credit Takaful Plan)
  • Nikaah Plan (Marriage Takaful Plan)
  • Osra Plan (Family Takaful Plan)
  • Sayarat Takaful Scheme (Motor Takaful Scheme)
  • Tarbiya Plan (Takaful Education Plan)

Go To The CORNERSTONE INSURANCE Website

JAIZ BANK Products
  • Current Account
  • Lease-to-own Financing Product
  • Make-to-order Deferred Sale Financing Product
  • Mark up Sale Financing Product
  • Partnership Financing Product
  • Profit Sharing Savings account

Go To The JAIZ BANK Website

LOTUS CAPITAL Products
  • Lotus Business Financing
  • Lotus Hajji Savings Plan
  • Lotus Halal Equity ETF
  • Lotus Halal Mutual Fund
  • Lotus Ijarah (Asset Financing)

Go To The LOTUS CAPITAL Website

NIGER INSURANCE Products
  • Mutual Halal

Go To The NIGER INSURANCE Website

STANBIC IBTC BANK Products
  • Distribution Financing
  • Imaan Current Account
  • Imaan Vehicle Financing (Ijara)
  • Trade Financing

Go To The STANBIC IBTC BANK Website