New Microsoft Office PowerPoint 97-2003 Presentation

New Microsoft Office PowerPoint 97-2003 Presentation - IBN...

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IBN KADAMA There is no wrongdoing if the debts are taken as Modaraba Capital with the permission of Rab-al-Maal who has settled the price with a clear conscience”. In another way, it is like a commodity given to Modarib which can be used as a capital of the transaction. All Fuqaha agreed that only capital should be in the form of cash as it is the Participation of Rab-al-Maal . The debts remain in the possession of debtor. Participation with Cash is different from debts, as it remains the property of Rab-al-Maal even when it is with Modarib .
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The essential conditions of Modaraba mode of financing For differentiating Modaraba mode of financing and interest mode of loans, principals should be kept in mind before establishing a financial transaction that in the normal banking and lending practice, money is made available to the borrower against the guaranteed return of principle with profit. In such practice collateral is the cover against the lending that ultimately liquidated in case of loss by lender.
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In Modaraba, profit and loss is the end of the contract and profit and loss sharing is the key In case of a loss, the Rab-al-Maal suffers the financial loss and Modarib faces loss in time, effort and his name. Capital has to be surrendered to Modarib who is free to utilize it in business mutually agreed between Modarib and Rab-al-Maal. According to Imam Ibn Hambal, this condition
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New Microsoft Office PowerPoint 97-2003 Presentation - IBN...

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