These 5 Banks Give Loan Without Interest in Nigeria in 2025
Introduction
If you’ve ever wondered, can you get a loan from the bank without interest? or if there are any 0% interest loans available in Nigeria, you’re not alone. Many Nigerians are looking for financial support that doesn’t come with the burden of high interest rates. The good news is that some banks give loan without interest in Nigeria based on Islamic banking principles or special schemes that provide loans without interest.
In this article, we will highlight 5 banks that give loan without interest in Nigeria in 2025, helping you understand where and how to get these loans, their locations, and how to contact them.
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What is Loan Without Interest?
A loan without interest means you borrow money from a bank or lender and only pay back the exact amount you borrowed—nothing extra.
Example:
If you borrow ₦100,000, you will repay ₦100,000, not ₦110,000 or ₦120,000 like in normal loans with interest.
In most regular bank loans, they charge you extra money called interest for using their money. But in interest-free loans, there is no extra charge.
Why would a bank do that?
Some banks in Nigeria (especially Islamic or non-interest banks like Jaiz Bank or Taj Bank) give loans without interest because:
- Their religion (Islamic banking) doesn’t allow charging interest (called “riba”).
- Instead of charging interest, they might do business with you, buy something for you and sell it back at a fixed price, or share profit with you.
So, when you hear “loan without interest”, just remember: You borrow money and return only what you borrowed, not more.
Without further ado, here are the five banks which give loan without interest in Nigeria
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These 5 Banks give loan without interest in Nigeria in 2025
1. Jaiz Bank PLC
Is Jaiz Bank giving loans without interest? Yes. Jaiz Bank is widely known as the first non interest bank in Nigeria. It operates on Islamic banking principles, meaning it offers financial products that comply with Sharia law, including interest-free loans.
Address: Kano House, No 73 Ralph Shodeinde Street, Central Business District, Abuja, P.M.B 31, Garki, Abuja.
Contact:
Website: www.jaizbankplc.com
Email: info@jaizbankplc.com
Phone: +234-9-4605294, +234-9-8709654
Popular Jaiz Bank Loan Products
Some of the bank’s flagship loan products include:
- Jaiz Home Finance
- Auto and Asset Finance
- SME and Business Finance
- School Support Loan
- Salary Advance for Civil Servants
All products are structured to be interest-free, using Islamic contracts.
Who Can Apply for Jaiz Bank Loans?
Jaiz Bank’s loan offerings are open to:
- Individuals looking for personal financing without violating their religious beliefs.
- Businesses (especially SMEs) seeking ethical financing options.
- Farmers and traders under special schemes such as Jaiz Waqf and MSME funds.
- Government workers for consumer financing like asset acquisition.
How to Apply for Jaiz Bank Loans
- Visit the nearest Jaiz Bank branch or official website: https://jaizbankplc.com/
- Select the appropriate non-interest loan product.
- Submit a formal application with required documents (e.g., valid ID, proof of income, business plan if applicable).
- The bank evaluates your request using ethical risk assessment, not just credit scores.
If you are looking for a loan in Nigeria without interest, especially as a Muslim or anyone concerned about ethical banking, Jaiz Bank PLC is the most reputable option. It aligns with Sharia principles, offers flexible repayment terms, and continues to expand its reach across the country.
2. Lotus Bank Ltd.
Does Lotus Bank offer loans without interest? Yes. Lotus Bank is one of the most prominent Islamic (non-interest) banks in Nigeria. Fully licensed by the Central Bank of Nigeria (CBN) in 2021, it operates entirely under Sharia-compliant financial principles. This means that Lotus Bank does not offer traditional interest-based loans. Instead, it provides ethical financing models that avoid riba (interest), promote fairness, and support socio-economic development.
If you are wondering which bank gives loans easily without interest in Nigeria, Lotus Bank is a trustworthy and modern alternative, especially for individuals and businesses seeking transparent, faith-based banking services.
Lotus Bank is another prominent Islamic bank in Nigeria, offering loans without interest under its Sharia-compliant services. If you are asking which bank gives loan easily with no interest, Lotus Bank is a reliable option.
Address: 30A Adetokunbo Ademola Street, Victoria Island, Lagos.
Contact:
Website: www.lotusbank.com
Phone: 0700 56887 2265 (0700 LOTUS BANK), 0700 0100 0000
Popular Lotus Bank Loan Products
Some of the bank’s innovative non-interest financial products include:
- Lotus Home Ownership Scheme
- Auto Finance and Asset Leasing
- SME and Working Capital Finance
- Women-In-Business Finance Program (WIBF)
- Education and School Finance
Each product is carefully structured to avoid interest and instead promote a shared-benefit system between the bank and the customer.
If you’re looking for a modern, trustworthy bank in Nigeria that offers loans without interest, Lotus Bank Ltd. is a leading choice. It blends Islamic finance ethics with digital innovation to support financial inclusion for all Nigerians, regardless of religious background.
Whether you’re starting a business, buying a car, or paying school fees, Lotus Bank’s non-interest loans offer a safe, fair, and Sharia-compliant solution.
3. Summit Bank Limited
Does Summit Bank offer interest-free loans in Nigeria? Yes. Summit Bank Limited is a fast-rising financial institution in Nigeria that provides Sharia-compliant, interest-free loan products tailored to meet the needs of individuals and businesses. Though relatively new in the non-interest banking space, Summit Bank has built a strong reputation for making Islamic finance more accessible to everyday Nigerians.
If you’re asking which bank gives easy loans without interest, Summit Bank is becoming a trusted option for affordable, ethical financing — especially for people looking for hassle-free borrowing that aligns with Islamic financial principles.
Address: No. 5 Amal Pepple Street, Off Ameyo Adadevoh Way, Jahi, Abuja.
Contact:
Email: info@summitbankng.com
Phone: +234(0)7007000005
Popular Summit Bank Loan Products
Summit Bank provides a range of Sharia-compliant financing solutions, such as:
- Personal Asset Finance
- Vehicle and Equipment Leasing
- Trade and Business Finance for SMEs
- Education and Tuition Support
- Home Financing (under lease-to-own structures)
All these products are structured to replace conventional interest with transparent, ethical profit-sharing or leasing arrangements.
If you’re searching for an easy-to-access, interest-free loan in Nigeria, Summit Bank Limited is an excellent alternative. By combining Islamic banking ethics with practical financial solutions, Summit Bank continues to support both individuals and businesses with flexible, fair, and non-exploitative funding options.
Whether you’re buying assets, growing a business, or funding personal needs, Summit Bank’s non-interest loans are designed to empower you — without the burden of interest.
4. Taj Bank
Does TAJ Bank give loans without interest? Yes. TAJ Bank is a fully-fledged Islamic bank in Nigeria that operates on a non-interest banking model, offering Sharia-compliant financial services to individuals, businesses, and government institutions. Founded in 2019 and licensed by the Central Bank of Nigeria (CBN), TAJ Bank has rapidly gained attention as a customer-focused and innovation-driven non-interest bank.
Address: Plot 72 Ahmadu Bello Way, Central Business District, Abuja, Nigeria.
Contact:
Website: www.tajbank.com
Email: tajconnect@tajbank.com
Phone: +2349087937417, +2347008252265
Popular Loan Products Offered by TAJ Bank
TAJ Bank offers a broad range of non-interest loan options through structured, Sharia-compliant financing models, such as:
- Personal Asset Finance (Home appliances, electronics, vehicles)
- Home and Property Finance
- Business and Equipment Finance
- Educational Financing
- Invoice Discounting & Working Capital Finance
These services are interest-free and instead focus on profit-sharing, leasing, or cost-plus sale models, ensuring fairness and mutual benefit.
If you’re searching for a modern, tech-savvy bank in Nigeria that provides loans without interest, TAJ Bank is a leading choice. With its clear focus on Islamic finance principles, customer service, and inclusive growth, TAJ Bank stands out as a beacon of ethical banking in Nigeria.
Whether you’re starting a business, buying an asset, or funding a personal need, TAJ Bank’s non-interest loans provide the freedom and fairness you deserve—without riba.
5. The Alternative Bank
Does The Alternative Bank offer loans without interest? Yes. The Alternative Bank is an emerging financial institution in Nigeria that offers innovative, interest-free loan products designed to meet the needs of Nigerians who prefer ethical, Sharia-compliant financing options. The bank’s mission centers on providing accessible and affordable financial solutions that break away from traditional interest-based banking systems.
If you’re asking, “Which banks give loan without interest in Nigeria?”, The Alternative Bank stands out as a modern, customer-friendly option focused on inclusivity and transparency.
Address: 239 Ikorodu Road, Ilupeju Lagos.
Contact:
Email: help@altbank.ng
Phone: 02 017 000 555
Popular Loan Products at The Alternative Bank
The bank’s interest-free financing options include:
- Personal Asset and Consumer Finance
- Business and Equipment Leasing
- Home Purchase and Renovation Finance
- Education and School Fees Financing
- Trade and Working Capital Finance
These products utilize Islamic contracts that replace conventional interest with profit-sharing, leasing, or cost-plus sale arrangements.
For Nigerians seeking a modern, interest-free banking alternative, The Alternative Bank offers reliable and accessible financial solutions that align with Islamic banking values. With its focus on transparency, fairness, and innovation, this bank continues to broaden financial inclusion by offering loans free from interest charges.
Whether for personal needs, business growth, or asset acquisition, The Alternative Bank’s interest-free loans provide a trustworthy and ethical way to access finance in Nigeria.
Frequently Asked Questions
Is there any loan without interest?
Yes, loans without interest do exist in Nigeria, especially from banks that operate on Islamic finance principles or special government and bank schemes.
Which loans should you avoid?
Loans with excessively high interest rates, hidden fees, or unclear repayment terms should be avoided to prevent financial distress.
Which bank takes the lowest interest on loans?
While the banks listed above provide zero-interest loans, traditional banks like First Bank and Access Bank sometimes offer loans at very competitive low-interest rates.
How to get a loan and not pay interest?
To get a loan without paying interest, you can apply to Islamic banks like Jaiz Bank, Lotus Bank, or Taj Bank, which offer Sharia-compliant financial products. Also, look for special government or NGO-backed loan schemes that offer 0% interest loans.
Conclusion
Is there any loan without interest? Yes, loan without interest options do exist in Nigeria. Several banks give loans without interest by operating on Islamic finance principles. Examples include Jaiz Bank, Lotus Bank, Taj Bank, Summit Bank, and The Alternative Bank. Also, some government and NGO programs offer loans without interest. If you want to know which banks give loan without interest in Nigeria, the above 5 banks—Jaiz Bank PLC, Lotus Bank Ltd., Summit Bank Limited, Taj Bank, and The Alternative Bank—are your best bet in 2025. These institutions offer interest-free loan products designed to ease financial burdens while complying with ethical banking principles.
Make sure to contact them directly through their official channels for the most accurate information on how to apply. Avoid loan offers that come with hidden or exorbitant interest rates and always read the terms carefully before borrowing.
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