The Micro, Small and Medium Enterprises (MSME’s) are crucial to the development of a country’s economy, especially an emerging economy like Nigeria. Research have shown that the growth of MSMES is sine qua non to national development, poverty eradication and employment generation.
Jaiz Bank recognizes the role MSME’s play in empowering individual and growing the economy at large and it is because of this that the Bank makes financing MSMEs its major area of focus which is in line with our Mission of “Making Life Better Through Ethical Finance”/span>
Conditions for accessing Financing:
a. The business must be in existence for at least one (1) year
b. The business must have a very good cash flow and turn over
c. The business should be registered with CAC (optional but strongly recommended)
d. The business must have an account with the Bank
e. The business must have run the account for atleast 3 months
a. Items/Product to be financed must relate to the core business of the customer
b. Satisfactory profitability history
c. Business must have spent a minimum of 6 months in a licensed/registered/approved business premises.
d. Membership of relevant association/cooperative/union etc (if any)
e. Existing, Credible and Verifiable Customer base
f. Reliable Financial bank statement or records for atleast 6 months
g. Favorable credit reports from relevant Institutions
General Application Requirements:
a. Customers application
b. Comprehensive Profile of the Business/Owners
c. 12 months statement of account (where available)
d. Current Certificate/License/Permit or Membership (where applicable)
e. Cash flow projection with verifiable notes/assumptions
f. Payment plan
g. Any other supporting documents to affirm the request.
In addition to the above, there are other additional specific requirements depending on the business, type of financing required (murabaha or ijarah), the amount involved and other considerations.
JAIZ/SMEDAN MATCHING FUNDS PARTNERSHIP
JAIZ BANK/SMEDAN Matching Fund Programme has commenced in Katsina, Bauchi, Adamawa and Kogi States.
The programme is in fulfillment of the Bank’s mandate of achieving financial inclusion through provision of finance to entrepreneurs who are either un-served or under-served with regards to access to finance and other developmental support services.
With this programme, both the Bank and SMEDAN are partnering to finance MSMEs operating within various Agricultural Value Chains, via a Non-Interest platform to deepen development of MSMEs and contribute to National Food Security, generate employment opportunities and create wealth.
IMPLEMENTATION MODALITIES OF THE PROGRAMME
To facilitate the inclusiveness and transparency, below are steps for implementation modalities of the programme;
a. Advertorial/Portal Opening: This has been done by SMEDAN via a public notice placed in selected national dallies to invite all suitable qualified MSEs.
b. Pre-qualification of Applicants: This takes form of soliciting binary i.e. Yes/No responses to a number of fields on the Platform to confirm the applicant’s suitability. Disqualified applicants cannot proceed beyond this stage.
c. Business Plan submission: Pre-qualified applicants shall be required to pay a processing fee of Ten Thousand Naira (N10,000.00) for the Business Plan template on the Platform.
d. Business Plans Evaluation: It shall be the responsibility of SMEDAN to evaluate suitable applicants.
e. Field Validation visits: Field visits shall be carried out to all shortlisted MSEs by SMEDAN. From preceding this stage, validated MSEs from this process shall then be referred to Jaiz Bank..
f. Referral to Jaiz Bank: Validated applicants will be referred to Jaiz Bank for Appraisal..
g. Jaiz Bank Appraisal of Final Beneficiaries: This shall be based on Jaiz Bank financing policy (RAAC) as suitably modified for this programme. Jaiz Bank shall thereafter inform all successful applicants, with guidance on next steps (issue of offer letters)..
h. Refresher Training of selected beneficiaries: All selected beneficiaries shall receive refresher entrepreneurship training, at no cost, by SMEDAN.
i. Opening of Bank Accounts: All successful applicants shall open and operate accounts with Jaiz Bank, the required 10% lien deposit shall thereafter be paid into their accounts by SMEDAN.
j. Financing Disbursement: To be done by Jaiz Bank in line with its Non-Interest model of financing..
Applications from qualified micro and small enterprises for facilities under this programme shall be received over a period of six (6) weeks or when the allocated quota of business plans per participating state is exhausted (whichever comes first) on the Platform.
a. Provide Bank Verification Number (BVN)
b. Execute Global Standing Instruction (GSI) order
c. NIRSAL Credit Guaranty cover
d. A moveable asset to be registered under the National Collateral Registry (NCR)
e. Key man risk Takaful insurance cover amongst other requirements.