Jafari No-Interest Credit Union

What Jafari No-Interest Credit Union does

Jafari No-Interest Credit Union (JNICU) is a federally chartered, not-for-profit credit cooperative founded in early 2016 and headquartered in Houston, Texas. It serves members of the Jafari (Twelver Shia) religious community who attend affiliated community centers in Houston, Dallas, and Austin, as well as their extended family members residing anywhere in the United States. The institution's defining purpose is to provide financial services that comply with Islamic finance principles prohibiting interest (riba), addressing the unmet need of a community that is structurally underserved by conventional banks and credit unions.

The CU's product suite consists of a federally insured savings account (NCUA-insured up to $250,000) and five categories of no-interest loans: refinancing of auto and student loans up to $35,000, home/car repair, medical, or college loans ($1,200–$8,000), personal loans ($3,000–$8,000), and business equipment purchase or repair loans ($5,000–$16,000). All deposits and withdrawals are processed via ACH; no cash, ATM, debit/credit card, or checking services are offered. Technology is built on FedComp's core credit union application hosted on Ongoing Operations Cloudworks (SSAE16-compliant), with the HomeCU platform providing member-facing online banking.

JNICU's business model is non-revenue-generating in the traditional sense. Instead, operations are funded by monthly account fees ($3–$60, scaled by loan-to-savings ratio), non-refundable loan application fees ($25 and $50), and voluntary fees/donations. The CU maintains exceptionally low operating expenses of approximately $40,000 per year by relying on donated office space and unpaid volunteer staff. Go-to-market is community-led: membership is acquired through outreach at Jafari community centers and through family referral networks, with no formal sales or marketing infrastructure. As of March 2026, the CU reports 365 members, $2.193M in deposits, $3.818M in no-interest loans issued since inception, and $1.228M in interest avoided by members.

Name

Jafari No-Interest Credit Union

Legal name

Jafari No-Interest Credit Union

Website

https://jafaricu.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Jafari No-Interest Credit Union is a not-for-profit, NCUA-insured credit union founded in 2016 that provides Sharia-compliant savings accounts and no-interest loans to Jafari (Twelver Shia) community members and their families across the United States.

Ownership category

akta.pro rank

Product category

Community Credit Union

NAICS

Credit Unions (52213)

SIC

Personal Credit Institutions (6141)

akta.pro primary industry

Bank & Credit Union Personal Loans (Unsecured Installment) (FSAKAAAL)

Keywords

• No-interest lending
• Islamic finance
• Community credit union
• Savings accounts
• Loan refinancing

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Technology or R&D, Operations, Supply Chain, Others

Revenue model

1. Monthly Account Fees: Members pay monthly account fees ($3-60 depending on loan-to-savings ratio) that cover approximately 25% of annual operating expenses ($40,000).
2. Loan Application Fees: Non-refundable loan application fees of $25 and $50 collected when members apply for loans.
3. Voluntary Fees and Donations: Members may voluntarily pay additional fees (NW Fee starting at $7/month) and make donations to help cover operating expenses and net worth requirements.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

Jafari No-Interest Credit Union is a not-for-profit, member-owned financial cooperative offering a federally insured Savings Account and a suite of Sharia-compliant no-interest loans (auto/student loan refinancing up to $35,000, home/car repair/medical/college loans $1,200–$8,000, personal loans $3,000–$8,000, and business equipment loans $5,000–$16,000). Operations are funded by monthly account fees, non-refundable loan application fees, and voluntary member donations rather than interest income. Membership is restricted to attendees of Jafari community centers in Houston, Dallas, and Austin and their family members anywhere in the US.

Product overview

Jafari No-Interest Credit Union is a not-for-profit financial institution offering Sharia-compliant, no-interest lending products alongside a basic savings account. Its product suite centers on a Savings Account as the deposit vehicle and five distinct no-interest loan products: Refinance Loans (for auto and student loans up to $35,000), Home/Car Repair/Medical/College Loans ($1,200–$8,000), Personal Loans ($3,000–$8,000), and Business Equipment Purchase/Repair Loans ($5,000–$16,000). All products are designed to comply with Islamic finance principles by avoiding interest. The CU operates as a single unified offering with no modular or platform architecture.

Differentiator

Problem solved

Functional benefit

Products and services

• Savings Account A federally insured (NCUA, up to $250,000) Savings Account for Jafari community members and their family members in the US. Requires a $200 opening deposit and $50 minimum balance; deposits and withdrawals are processed via ACH only, with no cash, ATM, debit/credit card, or checking services. Monthly fee is $3 if no CU loans exist or Savings balance equals/exceeds total CU loans, increasing to $12, $30, or $60 as the loan-to-savings ratio worsens. Also subject to optional/voluntary fees supporting the CU.
• No-Interest Refinance Loans Sharia-compliant no-interest loans used to refinance existing auto and college student loans, up to a maximum of $35,000. Requires at least 3 prior monthly payments on the existing loan. Includes a non-refundable loan application fee of $25 or $50. Available to Jafari community members who meet the CU's income, credit, and other requirements.
• No-Interest Home/Car Repair, Medical or College Loans Sharia-compliant no-interest loans ranging from $1,200 to $8,000 for home repair, car repair, medical expenses, or college costs. Subject to the CU's income, credit, and other eligibility requirements, with a non-refundable loan application fee of $25 or $50.
• No-Interest Personal Loans Sharia-compliant no-interest personal loans ranging from $3,000 to $8,000 for general personal needs. Available to Jafari community members who meet the CU's income, credit, and other eligibility requirements, with a non-refundable loan application fee of $25 or $50.
• No-Interest Business Equipment Purchase/Repair Loans Sharia-compliant no-interest loans ranging from $5,000 to $16,000 for business equipment purchase or repair. Subject to the CU's income, credit, and other eligibility requirements, with a non-refundable loan application fee of $25 or $50.

Quantifiable outcome

• $1,228,000 in interest avoided by members since inception
• +2 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core.

• National Credit Union Administration (NCUA)coreOthers · 1 January 2016US federal agency that insures member deposits up to $250,000 and regulates credit union operations. Approved JNICU's charter in early 2016. Members can review quarterly financial reports via NCUA's website.
• Texas Credit Union DepartmentcoreOthers · 1 January 2016Texas state regulatory agency that, along with NCUA, approved JNICU's charter and oversees credit union operations in Texas.
• FedCompcoreTechnology or IntegrationFedComp provides the credit union application software used by JNICU for member account management, loan processing, and core banking operations.
• Ongoing Operations (Cloudworks)coreTechnology or IntegrationOngoing Operations provides hosted data center services (Cloudworks product) for the FedComp credit union application. Provides SSAE16 compliant security, data backup, and business continuity. Allows CU operations to continue remotely during emergencies like hurricanes.

Scale indicators7 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Alliant Credit Union: Alliant is a digital-first US credit union offering deposits, personal loans, auto loans, and credit cards under NCUA oversight. Comparable to JNICU as an NCUA-insured member-owned depository institution extending consumer credit, though operating at national scale with a broader membership rather than a faith-based field of membership.
• Patelco Credit Union: Patelco is a community-based credit union offering deposits, personal loans, auto loans, and member-focused services under NCUA oversight. Comparable to JNICU as a member-owned depository institution extending consumer credit, though at much larger scale and serving a broader community rather than a faith-based one.
• Self-Help Federal Credit Union: Self-Help Federal Credit Union is a community development credit union serving underserved populations with mission-driven lending and low-cost operations. Like JNICU, it operates with a defined field of membership, federal insurance, and a focus on financial inclusion rather than profit maximization — making it directly comparable in mission and operating philosophy.

Emerging players

• University Islamic Financial: University Islamic Financial is a US-based Sharia-compliant home financing provider serving Muslim-American consumers seeking riba-free alternatives. Comparable to JNICU as a US Sharia-compliant financial services provider addressing the same faith-driven demand, though focused on mortgages rather than deposit-taking credit union services.
• Devon Bank: Devon Bank operates one of the most established Islamic finance divisions in the US, offering Sharia-compliant residential and commercial real estate finance to Muslim consumers. Comparable to JNICU as a US financial institution serving the Sharia-compliant demand pool, though structured as a commercial bank rather than a credit union.
• Guidance Residential: Guidance Residential is one of the largest US providers of Sharia-compliant home financing, serving Muslim-American consumers. Comparable to JNICU as a US Sharia-compliant financial services competitor addressing the same riba-free lending demand, though operating in real estate finance rather than deposit-based credit union services.

Broad incumbents

• Bank of America: Bank of America is one of the largest US retail banks offering deposits, mortgages, auto loans, credit cards, and small business lending. Comparable to JNICU as a mainstream US financial institution competing for the same household wallet, though it operates interest-based products incompatible with JNICU's Sharia-compliant member base.
• Bethpage Federal Credit Union: Bethpage Federal Credit Union is a large New York-based community credit union serving a defined field of membership (military and broader community) with full-service consumer banking. Comparable to JNICU as a federally-insured community credit union with a defined membership base, though substantially larger and offering a full suite of products.
• PenFed (Pentagon Federal Credit Union): PenFed is one of the largest US credit unions, originally serving military members and now open to a broader community, offering full-service consumer banking. Comparable to JNICU as a federally-insured community-defined credit union offering consumer loans and deposits, though at vastly greater scale with mainstream product breadth.
• JPMorgan Chase: JPMorgan Chase is the largest US retail bank, offering the full spectrum of deposit, lending, and payment products to consumer and small business customers. Comparable to JNICU as a mainstream competitor for member deposits and consumer loans, though operating at vastly greater scale and with conventional interest-based products that JNICU members decline on religious grounds.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks1 record

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Jafari No-Interest Credit Union