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Mixing of Capital
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SHIRKAT AND ITS
COMPARISSION WITH AN
INTEREST BASED ECONOMY
First point:
In interest based economic system, lender lends its
money to the borrower and feels free, as he asked
for risk free return on his investment. While
comparing it with Shirkah based lending both
parties share their risk and reward.
Shirkat-ul-Milk Shirkat-ul-Aaqd
Shirkat-ul-Milk (Joint ownership)
Joint
ownership of two or more
persons in a particular property
with out any commercial
intention.
Types of Shirkat-ul-Milk
Shirkat-ul-Milk
Shirkat-ul-Milk Shirkat-ul-Milk
Optional (Ikhtiary) Compulsory (Ghair Ikhtiary)
Types of Shirkat-ul-Milk
1. Shirkat-ul-Milk Optional (Ikhtiary)
This comes into operation by the option of
parties e.g., purchase of asset with mutual
consent.
Shirkat-ul-Amwal
Shirkat-ul-Aaqd Shirkat-ul-Aamal
Shirkat-ul-Wojooh
Shirkat-ul-Amwal (Partnership in capital)
Where all the partners invest some capital into a commercial
enterprise.
Shirkat-ul-Mufawadah Shirkat-ul-Ainan
Types Of Shirkat-ul-Aaqd
1-Shirkat-ul-Mufawadah:
Where capital, profit, loss and management
are equal among the partners.
Capital – 70 Capital – 30
Permanent Musharaka:
Permanent Musharaka is a partnership of
permanent nature i.e. a going concern.
Profits
Deposits Equity
Weightage System
Profits
Pool of Funds
Financing
Profits
Businesses/Corporates
Musharaka could easily be used as a vast
mode of financing for almost every financial
need. Below are some fields where this mode
can easily be applied:
Project Financing
Long-term Finance
Running Finance (limited scope)
Investment Banking
Redeemable capital investment
Partner Bank
Profit
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Profit
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