Monday, 18 September 2017 11:33

Investment

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  • Mudharaba Investment: - A partnership between CBO and eligible customer (entrepreneur), profit and loss shared as per the agreed profit sharing ratio.
  • Musharaka Investment: - It is a joint ownership of property or equipment or commercial enterprise. Partner shall share profit as per the agreed ratio while losses are shared in proportion to capital contribution of partner.
  • Diminishing Musharakah: - is a form of co-ownership in which two or more persons (i.e., the bank and the client) share the ownership of a tangible asset in an agreed proportion and one of the co-owners/client undertakes to buy in periodic installments the proportionate share of the other co-owner/bank until the title to such tangible asset is completely transferred to the purchasing co-owner/client.

 

 

 

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