Based on 02 (two) principles.

• Al-Wadeeah
• Mudaraba.

Deposit with anyone with permission to use the money deposited by the depositor.

The term refers to a form of business contract in which one party brings capital and the other personal effort. The proportionate share in profit is determined by mutual agreement. But the loss, if any, is borne only by the owner of the capital, in which case the entrepreneur gets nothing for his labour. The financier is known as ‘Rab-ul-mal’ and the entrepreneur as ‘Mudarib’. As a financing technique adopted by Islamic banks, it is a contract in which all the capital is provided by the Islamic bank while the business is managed by the other party. The profit is shared in pre-agreed ratios, and loss, if any, unless caused by negligence or violation of terms of the contract by the ‘mudarib’ is borne by the Islamic bank. The bank passes on this loss to the depositors.

• Sahib-ul-Mal or Rab-ul-Mal (provider of capital/capital)
• Mudarib (Capital/Capital Manager)

Mudarib

at a pre-determined proportional rate. For example: 50:50 or 80:20

The capital provider (Rab-ul-Mal) will bear the loss. If there is more than one contributor of capital (Rab-ul-Mal), he shall bear the loss to the extent of his capital.

Mudarib (Capital/Capital Manager).