Jafari No-Interest Credit Union (JNICU) is a federally insured, volunteer-run credit union in Houston that lends at 0% and pays its roughly $40,000 of annual expenses from member account fees, voluntary fees and donations instead of interest. As of July 2026 it reports 370 members, $2,193,000 in deposits and $3,933,000 lent since it opened in early 2016, with $1,274,000 of interest avoided by borrowers. Membership is limited to Jafari (Shia) community members of three Texas centers and their relatives anywhere in the United States, and loans run from $1,200 to $35,000 depending on the purpose and the collateral. It is small, slow and real, and it is the only US credit union that charges no profit rate at all.
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What Jafari No-Interest Credit Union is
JNICU received approval from the Texas Credit Union Department and the National Credit Union Administration in early 2016 and started operations the same year. Its stated mission is to help community members avoid interest on loans, and it cites Quran 2:276 on its homepage. It is a credit union in the ordinary legal sense: a not-for-profit cooperative that takes deposits and makes loans, whose member deposits are insured by the NCUA. The NCUA's share insurance page confirms that individual accounts at federally insured credit unions are insured up to $250,000, that joint accounts are separately insured up to $250,000 per owner, and that the fund is backed by the full faith and credit of the United States. JNICU links to its own NCUA credit union details page and quarterly call reports from its homepage, which is the right place to verify its financials.
The office is at 2323 South Voss Road, Suite 370, Houston, in donated space, open by appointment on Sundays between noon and 1 pm, with Dallas and Austin appointments also available. There are no tellers. Everything moves by ACH through online banking. Readers coming from the interest-free Islamic loans hub should understand that this is a membership institution first and a lender second; the deposit base is what funds the loans.
How a credit union lends at 0% and stays solvent
Ordinary credit unions cover costs and build capital from loan interest. JNICU replaces that with three things. First, a tiered monthly account fee: $3 if you have no loans or your savings balance covers your loans, $12 if your loans exceed your savings by less than $10,000, $30 if by less than $20,000, and $60 otherwise. Second, voluntary fees that members can start, pause or stop at any time: a Net Worth Program fee of $7 a month that is non-refundable, a Regular Lending Program fee of $10 to $250 a month that is refundable after three years subject to the credit union's condition, and specific-purpose lending fees refunded as borrowers repay. Third, donations and unpaid volunteer staff.
The homepage breaks down annual expenses of about $40,000: roughly $20,000 for IT systems, $10,000 for bank and ACH costs, $5,000 for forms and $3,000 for insurance and operating fees. The $3 account fee covers about a quarter of that. The voluntary fee brochure explains the regulatory driver: NCUA requires credit unions to hold net worth of at least 7% of assets, and JNICU's own target is 14%, so a new member should expect to be asked for the $7 Net Worth fee for several months. This is the honest answer to the question many readers ask about 0% lending: it works because members subsidize it, deliberately and transparently.
Who can join
The field of membership is limited to Muslims who follow the Jafari school and are community members of the Islamic Education Center of Houston, the Islamic Ahlul Bayt Association in Austin, or the Metroplex Organization of Muslims in North Texas, plus their family members. The family definition is wide: siblings, spouses, parents, children, grandparents, grandchildren, aunts and uncles, nieces and nephews, first cousins, in-laws and second cousins. A relative of an existing member can join from anywhere in the United States, and the homepage lists members from California, Colorado, Florida, Georgia, Illinois, Maryland, Michigan, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania and Virginia who joined that way.
Three further rules apply. Only natural persons can be members. The primary member must be a US citizen or resident, and a joint member who is not must hold a US federal or state photo ID and a Social Security card. Every applicant must already have an account at another bank or credit union, because all deposits and withdrawals move by ACH. The credit union says it is working to add other Jafari centers in Texas, Florida and Michigan. If you are Sunni, or Shia but unaffiliated with those centers and without a member relative, you cannot join today, and the halal personal loans hub lists the alternatives.
What Jafari lends, and the caps on each loan
The 'Applying for a Loan' guide on jafaricu.com is 12 pages long and worth reading in full. The main categories, all at 0%, are set out below. Every loan requires a $300 deposit held in savings until payoff, a credit file unless the loan is fully secured by deposits, and compliance with the credit union's debt-ratio guidelines.
| Loan type | Amount | Term and conditions |
|---|---|---|
| Refinance existing auto, student or home loan | Up to $35,000 | At least 3 on-time payments made; existing rate must be at or above the CU's announced minimum; home refi is unsecured |
| Short-term loan (medical, car repair, home repair, appliances, tuition and books) | $1,200 to $8,000 | Term is the greater of 12 months or amount divided by $200, up to 60 months; one at a time |
| Personal loan (no purpose required) | $1,200 to $3,000 single, $6,000 joint; up to $8,000 with car collateral; up to $35,000 secured by deposits | Term is the greater of 12 months or amount divided by $150, up to 60 months; 6 months between loans |
| Business equipment purchase or repair | $5,000 to $8,000 single, $16,000 joint; up to $35,000 secured by deposits | All owners must be members; tax return, bank statements and EIN letter required |
| College tuition (in-state public colleges) | Lower of $3,000 per semester or fees due after grants; $24,000 lifetime | 84 months, first payment 3 months after disbursement; paid directly to the college; 2.75 GPA to continue |
Secured loan limits depend on collateral and credit tier. A car less than two model years old supports 100% of its value up to $30,000 for tiers B and above (credit score 650 or higher), falling to 80% of value up to $5,000 for tier E (549 and below). Only cars titled in Texas or Florida and no older than 15 years are accepted as collateral. Deposit-secured loans are capped at the lower of $40,000 or 10% of the credit union's net worth. Income caps also apply: a tier B borrower can get a secured loan of up to 10 times monthly income less $1,000, and lower multiples apply down the tiers. The credit union stops making new personal loans when the outstanding total reaches $200,000, and new tuition loans at $100,000, which is why approvals can wait on repayments.
Fees and the fine print that matters
Jafari is not free, and it does not pretend to be. The loan guide lists a $25 short application fee and a $75 full application fee, both non-refundable whether or not you are approved; the homepage summary says the two fees are $25 and $50, so confirm the current figure before you apply. Vehicle lien recording costs are passed through at $35 to $45 in Texas and $75 to $85 in Florida. A late payment fee of $10 is charged once a month if the full payment is not received by the due date, deducted from savings. A short loan application is reviewed first; only when asked do you submit the full application, and disbursements for refinances go directly to the existing lender, which must be an institutional lender rather than an individual.
- Your savings balance must be at least $50 plus enough to cover the application and recording fees before you apply.
- If you went 60 months without being charged the monthly fee because of insufficient funds, you must pay the back fees before a loan is considered.
- Refinanced auto loans can run up to 48 months if the car is under 11 model years old and up to 60 months if under 5, with a $100 minimum monthly payment.
- Student loan refinances above $25,000 in combined balances are repaid over 84 months.
- Priority goes to members who have never had a personal loan, or have had the fewest.
- A tuition loan requires the student's Financial Aid Award Letter showing eligibility for federal student loans, and at least 9 credit hours of enrollment.
The savings account: a place to park money, not to earn
The savings account needs a $200 opening deposit and a $50 minimum balance, and it is federally insured up to $250,000. Deposits and withdrawals are by ACH only; the credit union accepts no cash, issues no checks, and has no ATM, debit or credit cards. The homepage does not state that any dividend or profit is paid on savings, and the fee schedule is built around the account as a support for lending rather than a return product. For a member, the account's job is to hold the $300 required deposit per loan, receive loan disbursements and make payments. For a saver who simply wants riba-free yield, UIF's profit-sharing savings or Stearns Salaam Banking, covered in our bank accounts hub, are the better fit, and larger deposits at Jafari are better understood as a way to expand the loan pool, which the credit union says an average credit union lends out at 75%.
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Two other institutions come up in the same searches. NorthCountry Federal Credit Union in Burlington, Vermont offers a Halal Loan developed with the Islamic Society of Vermont: up to $4,000 including an origination fee, repaid over one to four years, with no prepayment penalty and translation services in over 100 languages. Instead of interest, borrowers pay an origination fee set by the amount borrowed and deducted from the loan; the fee amount is not published. Any member can apply, and NorthCountry also originates Guidance Residential's co-ownership home financing for Vermont members. Devon Bank in Chicago is an FDIC-insured community bank whose faith-based products are murabaha home financing in 33 states; its personal banking page describes standard checking, money market accounts and CDs rather than a 0% loan.
| Institution | Who can borrow | Personal loan terms | Pricing |
|---|---|---|---|
| Jafari No-Interest CU, Houston | Jafari community members of three Texas centers and relatives nationwide | $1,200 to $35,000 by type and collateral; 12 to 84 months | 0% plus $25 to $75 application fees, $3 to $60 monthly account fee |
| NorthCountry FCU, Vermont | Any credit union member | Up to $4,000 including fee; 1 to 4 years | Origination fee based on amount, not published |
| Devon Bank, Chicago | Home financing customers in 33 states | No personal loan product published | Murabaha home financing; quote-only |
Our view: who Jafari suits
Jafari is the right first call for a member of the Houston, Austin or North Texas Jafari community who carries an interest-bearing car loan, student loan or past-due IRS balance, or who needs a few thousand dollars for a medical bill or a car repair without a payday lender. The 0% is real, the fees are small and disclosed, the insurance is federal, and the published rules leave little room for surprise. It also suits relatives of members anywhere in the country, since joining through family is explicitly allowed. If your car is titled outside Texas or Florida it cannot serve as collateral, and the Texas halal car financing guide covers UIF's purchase financing for buying rather than refinancing.
It does not suit anyone who needs money quickly, since applications are reviewed by a volunteer credit committee in two stages; anyone outside the field of membership; anyone wanting a mortgage, which the credit union does not make; or anyone whose credit is weak enough to land in tier E, where secured limits fall to $5,000. For those readers our pieces on halal personal loans in America and halal financing with bad credit set out what else exists. And if you are eligible but have no borrowing need, the most useful thing you can do is join, deposit, and pay the $7 Net Worth fee so that a neighbor can refinance out of riba. Facts checked against jafaricu.com, ncua.gov, northcountry.org, devonbank.com on September 11, 2026.
Frequently asked questions
Is Jafari Credit Union insured?
Yes. Jafari No-Interest Credit Union states that member deposits are federally insured by the NCUA up to $250,000, and it links to its NCUA credit union details page and quarterly call reports from its homepage. The NCUA share insurance page confirms the $250,000 limit per member for individual accounts, backed by the full faith and credit of the United States.
Can a Sunni Muslim join Jafari Credit Union?
Not under the current field of membership. The published charter limits membership to Muslims who follow the Jafari school and belong to three named Texas community centers, plus their family members. Family of an existing member can join from any US state. The credit union says it hopes to add more Jafari centers in Texas, Florida and Michigan.
What is the maximum loan from Jafari Credit Union?
It depends on type and collateral. Refinances of existing auto, student or home loans go up to $35,000. Short-term loans for medical bills, repairs or tuition run $1,200 to $8,000. Unsecured personal loans cap at $3,000 for a single account or $6,000 joint, rising to $8,000 with a car as collateral and $35,000 if secured by deposits.
Does Jafari charge any fees on its 0% loans?
Yes, small ones. Application fees are non-refundable, listed at $25 for the short application and $50 to $75 for the full application depending on which page you read. Vehicle lien recording is passed through at cost, a $10 monthly late fee applies, and a $300 deposit must stay in savings until the loan is repaid. Monthly account fees range from $3 to $60 depending on how your loans compare with your savings.
Does Jafari Credit Union offer checking or a debit card?
No. The savings account is ACH-only, with no cash, no checks, no ATM access and no debit or credit card. It requires $200 to open and a $50 minimum balance. Members keep an account at another bank or credit union for daily transactions, and that external account is a condition of membership.
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Is there an Islamic bank in Houston?
There is no Islamic bank chartered in Houston. Jafari No-Interest Credit Union is the Houston institution closest to that description, and Guidance Residential and Devon Bank both have Houston-area offices for home financing. For riba-free deposits open to anyone, Stearns Salaam Banking and UIF's profit-sharing accounts are available online to Houston residents.
