AI agents for business finance: what they can and can't do
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The short answer
Jaiz Bank does not charge interest: under Murabaha it buys the item you need and sells it to you at a stated mark-up, paid in instalments, and under Ijara it leases an asset to you for an agreed rental. The cost is fixed in the contract at the start, so the number to compare is the total sale price or total rentals against the cash price of the item; Jaiz did not publish a standard mark-up we could verify as at October 2026.
Why there is no interest rate to quote
Jaiz Bank Plc operates under the CBN's non-interest banking framework, which means it does not lend money and charge interest on it. Instead, its personal and business financing is built on trade and lease contracts. The bank earns a profit by selling or leasing an asset, not by charging for the use of money. That changes how you should read the cost: there is no monthly interest rate that grows with the balance, but there is a price, and it is fixed in the contract.
We looked for a Jaiz Bank page publishing a standard profit margin, fee schedule or maximum amount for its retail financing and did not find one we could verify in October 2026. The mark-up is set per customer and per transaction, based on the item, the tenor and your repayment capacity. The contract you sign shows it.
Murabaha: cost-plus sale
In a Murabaha, you identify an item, such as a car, household equipment or stock for a shop. The bank buys it from the seller, takes ownership, then sells it to you at the purchase price plus an agreed profit. You pay that sale price in instalments over an agreed period. Key features:
- The bank must own the item before selling it to you, so the transaction runs through the seller, not through a cash payout to you.
- The sale price is fixed when you sign. It does not rise if you take longer, because a late payment does not add profit to the bank.
- The mark-up is disclosed as a naira amount or as a percentage of the cost price.
Worked example: a ₦1,000,000 item over 12 months
This uses an illustrative mark-up of 18%. It is not Jaiz Bank's figure.
- Cost price paid by the bank to the seller: ₦1,000,000
- Mark-up at 18%: ₦180,000
- Sale price to you: ₦1,180,000
- Monthly instalment over 12 months: about ₦98,333.33
To compare this with an interest-based loan, put the totals side by side: what you pay back in all, minus the cash price of the item. Here that is ₦180,000 on ₦1,000,000 over a year. Because the price is fixed and you repay steadily, an 18% mark-up over a year costs more than an 18% annual rate on a reducing balance would, so compare the naira totals, not the percentages.
Ijara: lease and rental
In an Ijara, the bank buys an asset and leases it to you for a fixed rental. The bank owns the asset during the lease and normally bears ownership risks such as major damage not caused by you; you pay for its use. In Ijara wa iqtina, a common variant, ownership passes to you at the end of the lease, by sale or gift, as agreed at the start. Rentals can be fixed or reviewed at set points; the contract states which.
Example, with illustrative figures: the bank buys equipment for ₦600,000 and leases it to you for 12 months at ₦57,500 a month. Total rentals are ₦690,000, so the cost of the arrangement over the cash price is ₦90,000. If ownership transfers at the end for a token price, add that to the total.
Fees, charity payments and other costs
Non-interest contracts can still include administration fees, insurance (often takaful, a cooperative form of cover) and charges for documentation. Many contracts also include a clause under which a customer who pays late without good reason agrees to make a donation to charity rather than pay a penalty to the bank. Read the contract for each of these and add any fixed fees to your total cost. For general background on non-interest money, see interest-free and halal savings in Nigeria and how Jaiz Bank financing works.
What to check first
- Ask for the cost price, the mark-up and the total sale price in naira (Murabaha), or the rental schedule and total rentals (Ijara).
- List every fee: administration, takaful and documentation.
- Confirm what happens if you pay late and if you want to pay early; some banks may give a rebate on early settlement at their discretion.
- Check who owns the asset during the contract, and who insures it.
- Compare total cost against the cash price, and against any other offer you have; see APR versus flat fees for how to compare on totals.
For the application steps and documents, see how to apply for Jaiz Bank personal financing.
Where Pryme fits
If you prefer money that earns no interest by design, Pryme's Interest-free Box, one of the Naira Savings Boxes, lets you set money aside that earns nothing. It is a savings tool, not financing.
Questions people ask
Does Jaiz Bank charge interest on loans?
No. Jaiz Bank finances through contracts such as Murabaha (cost-plus sale) and Ijara (lease), so the cost is a fixed mark-up or rental rather than interest.
What is Jaiz Bank Murabaha profit rate?
We found no standard published mark-up as at October 2026. It is set per transaction and shown in the contract as a naira amount or percentage.
How do I compare Murabaha with a normal bank loan?
Compare totals: the full sale price you will pay minus the cash price of the item, against total interest and fees on the other loan, for the same period.
What happens if I pay Jaiz financing late?
Read the contract. Non-interest contracts often use a charity payment clause instead of a penalty to the bank, and late payment can still be reported to credit bureaus.
Sources
- Central Bank of Nigeria: licensed institutions and consumer protection · accessed Oct 2026
- FCCPC: Federal Competition and Consumer Protection Commission (digital lenders register and regulations) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.