Profit-sharing trust financing between capital provider and entrepreneur.
Under Mudarabah, the Society provides capital to a member or entrepreneur who contributes labour and expertise. Profits generated are shared between both parties on a pre-agreed ratio, decided before the venture begins.
If the venture makes a loss through no fault or negligence of the entrepreneur, the Society — as capital provider — bears the financial loss, while the entrepreneur's loss is the time and effort invested. This risk-sharing structure is central to why Mudarabah is considered halal, unlike a fixed-interest loan where the lender bears no risk at all.
This facility is available to members in good standing. Are you a non-member? Apply below. Already a member? Request it through the Member Portal instead.
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