Disadvantages of Musharaka

1. It is extremely difficult to change from the system of interest based economy to that of interest free.


2. Undue interference of the lender (e.g the bank) in the borrower's business will be in place.


3. Borrowers suspect that the lender will ever share their losses.


4. The lender will suspect that the borrower will underestimate profits.


5. There will remain mistrust between the lender and the borrower.


6. The borrower's financial secrets will get open to the lender, the fact which may harm the former's business.