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Saturday 13 August 2011

Modes Of Operations

Islamic Banks employ their funds in the following interest free loans:

  1. Modaraba        (Venture Capital or Project Finance)

  2. Musharaka       (Partnership / Profit and Loss Sharing)

  3. Leasing             (Financial Leasing)

  4. Bai-Salam         ( Deferred Payments Sales)

  5. Murahaba         (Financing on cost plus basis)



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