Are you looking for Taj bank loan then you are on the right web page for all the necessary information about taj bank loan and ussd code.
TAJBank will be the second bank — non-interest, or Islamic bank to begin operations in Nigeria.
The bank has its main office in Abuja and an additional bank branch located within Kano (Northern Northern Nigeria).
TAJ provides a variety of public sector, retail SME and corporate banking services.
Table of Contents
Types of Taj bank loan for business
Cost Plus (Murabahah) Working Capital
TAJ Bank, through this working capital finance facility, can help you finance the purchase of raw materials and other assets. The facility operates by TAJ assigning you as an agentto search for the products or assets that you require. After sourcing and approved by the bank, they will pay the vendor. You must repay the loan on a future date that you have agreed to (or with installments) or on the basis of a “cost and profits” basis.
Cost Plus (Murabahah) Import Finance
The facility, also known as an import financing facility is ideal for companies that purchase items from overseas including raw products, finished goods, machinery, equipment and more. In this case, TAJ can issue an loan (LC) in the name that of the company exporting (the recipient). The letter of credit is a promise by the bank to purchase items in accordance with the conditions that are stipulated in the LC. The money is usually paid on receipt of shipping documents.
Manufacturing / Project / Construction (Istisna) Finance
Istisna also known as the project financing -is a contract used to finance manufacturing, construction as well as development or construction projects. In this agreement, TAJ will facilitate and execute these projects for your company. The bank will then sell (cost as well as profits margin) the completed project to you under deferred terms of payment. This type of facility is utilized to finance for the development of properties (residential as well as commercial) industrial buildings, and much more.
Bonds & Guarantees (Kafalah)
TAJBank offers this service to organizations who require customers, or trading partners, with guarantees. They can be used to prove your creditworthiness or your capacity to fulfill the obligations of your contract. Guarantees are available in forms like Bank guarantees as well as advance payment guarantee as well as bid bonds, performance bonds and much more.
Partnership (Musharakah)
Musharakah or partnership is a type of facility that is utilized to finance short- to long-term contracts or any other ventures that are commercially viable. In this instance, TAJ and a business sign a partnership agreement which requires each partner to invest capital or equityfor the purpose of establishing the new project or extend the existing one. The risk and benefits from the partnership are divided in accordance with the conditions of the partnership.
Cost Plus (Murabahah) SME Finance
Through this product of financethe needs of funding for small and medium-sized companies (SMEs) are fulfilled. In this case, TAJ is a small business loan (e.g. traders, farmers etc.) within cooperative clusters and finance their working capital requirements. Every cooperative cross in a cluster guarantees the other — and ensures good performance across all clusters. TAJBank directly purchases the products (or assets) needed, and then sells them to SMEs by using the cost-plus-profit model and delayed payment conditions. SME owners can decide to pay either in installments or as one lump amount.
Taj bank loan requirement
TAJ offers a variety of various business finance products. Certain of these products are just suitable for specific kinds of companies. Some, for instance, are designed for SMEs and others are geared towards large businesses that have international operations. So, each product has specific eligibility or qualification conditions.
However, just like most banks in Nigeria there are some fundamental credit criteria that are applicable to all credit facilities that are on offer.
Whatever the case you do, your business must produce regular cash flow and also have a solid credit rating for the purpose of securing any kind of loan from TAJ. Credit history, specifically important. If you’ve been in default in one of your previous debt obligations, getting another loan approval is extremely unlikelyin the event that you’re not in a position to pledge your important assets to be collateral.
Other lending guidelines that are general in nature (but do not have to be) include:
- Registering a business — or company through an organization that is registered with Corporate Affairs Commission (CAC)
- A corporate or business bank account
- Have been trading for a few years (1-3 years at a minimum)
- It is essential to have a positive Credit Bureau Report — that is free of unpaid obligations or bad credit
- Being a regular client of the bank.
Only registered businesses can obtain business loans through TAJBank. Businesses that are not registered will need to look for alternative solutions among which is obtaining an individual loan and using it for business needs. TAJ offers the option of a salary advance as well as other personal loan options.
Another alternative is to take out an advance loan through SukFin. SukFin offers a variety of different options for financing your business.
How do I submit an application to a Taj bank loan
When you’re aware of the many finance options that are available, and you have identified those that could meet your requirements and requirements, you are prepared to submit a loan application.
The loan application process can be completed through an TAJBank branch. You will be able to consult with a loan advisor to discuss your needs further and then complete the application. On this form you’ll need to provide the details of the company’s financial history and its goal.
In the course of submitting an application, you could be asked to submit supporting documents. The documentation, application form as well as any other information available in the public domain are the sources TAJ will consider when deciding whether to fund your company or not. Decisions regarding lending will be made in accordance to TAJBank policies on lending.
A successful application is the result of an offer note to be issued which outlines the steps you have to complete prior to loan payment.
A checklist of essential documentation frequently requested, includes:
- Application form completed
- Company profile
- Business plan
- Budget for cash flow
- Statements from banks (12 months)
- Audited financial statements
- Certificate of Incorporation
- A valid means of identification (driving license (passport, driver’s license, voters card)
- Address proof
- The details of the collateral that is that is offered (if there is any)
Note. The credit card you are using determines what documents you’ll have to submit.
Most frequently inquired about questions (FAQs)
How is the time frame for receiving the funds via TAJ Bank?
Each credit facility will be able to set its individual processing and approval timeframe. Most of the time smaller non-secured loan requests are accepted and distributed the fastest.
What is the time frame I must follow to repay the TAJ A bank loan?
TAJ can modify any repayment term in accordance with your company’s needs. It is also possible to advance funds to meet both as well as long-term needs.
What is the maximum amount I can get with TAJ Bank?
The amount you are able to take out from TAJ is in line with the amount you can repay i.e. the turnover of your business.
What exactly is a bank that is not a lender of interest?
TAJBank is an interest-free, or Islamic Bank. This means that TAJ doesn’t pay nor receive any interest. Additionally, TAJ is unable to finance “Haram” items such as gambling, alcohol and tobacco. Additionally, TAJ is unable to be a part of highly speculational transactions.
Does TAJ Bank require collateral?
Certain loan options require collateral, whereas others don’t. In general when you borrow large amounts of money, you’ll almost always require some form of collateral.
As collateral, banks may take things such as:
- Obligations of Federal Government of Nigeria (FGN Bonds, FGN Eurobonds, FGN Treasury Bills, etc.)
- Obligations of state governments and institutions from the Federal Government of Nigeria
- Other non-government debt instruments
- Physical properties e.g. real property
- Third party Guarantors (or collateral)