Partnership

Musharaka is a mode of financing in the form of a partnership between the bank and its client whereby each party contributes to the capital of the partnership in equal or varying degrees either to establish a new project or share in an existing project.

 Features

  • Profit is shared according to the free agreed profit sharing ratio
  • Loss is shared proportionate to share of investment
  • Each partner has the right to participate in the management of the business

Benefits

  • Risk and Reward are shared between the Bank and the Customer
  • The Banks participate actively in the management of the business
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