Mudarabah is a profit-sharing partnership between you and the bank. Under this arrangement, the Bank provides the capital, while the you manage the business. The profit generated from the business is shared between the Bank and you according to a pre-agreed ratio.
with salient features like,
- A Mudaraba contract is executed between the Bank and you.
- Equity is provided by the Bank.
- You are free to manage your business in your way.
- Profit is divided as per agreement.
- Bank bears the actual loss alone.
