Benjamin Walwai Miba\u2019am ^{1*<\/sup>, Nimvyap Nanfa1 \u00a0\u00a0<\/sup>and Felix Lekmak2<\/sup><\/strong><\/p>\n\n\n\n}

ABSTRACT<\/strong><\/p>\n\n\n\n

Interest free banking has been in existence for over six decades but only became popular in Nigeria in recent times. Nigerians both Muslims and non-Muslims alike are gradually accepting the services provided by these banks after realising that the banks aim to deepen financial inclusion using Islamic tenets. Owing to the difficulties encountered by Small and Medium Enterprises (SMEs) in drawing loan facilities from the conventional banks, the interest free banking became good alternatives to securing finance for business establishment and\/or expansion. The study adopts the survey method of data collection and primary data analysis in the study area of Jos metropolis to ascertain the views and perception of SMEs towards the services provided by interest free banks in the study area. Using Statistical Package for Social Sciences (SPSS), Cross tabulation of responses gotten from administered questionnaires shows that respondents are highly aware of the activities of the interest free banks, below average have patronised the bank for the several services they provide while a very large number of SMEs are willing to commit to the services the banks provide if they will not be discriminated because of religion. On the development of SMEs within Jos metropolis, 37.5% strongly disagreed that interest free banks have contributed to the development of SMEs while 43.8% of the respondents agreed that interest free banks have contributed to the growth o SMEs in the study area. The study recommends increase awareness among the general public and SMEs on the workings and principles of interest free banks for easy understanding and patronage among other recommendations.<\/p>\n\n\n\n

Keywords: <\/strong>Interest-free banking, Islamic financing, Small and Medium Enterprises, Profit and loss sharing.<\/em><\/p>\n\n\n\n