AboutMudharaba

Mudarabah is also known as Muqaradah or Qirad.
The Mudarabah contract is a partnership in profit between one party who contributes capital (rabb-al-mal/capital provider) and the other party who contributes efforts in the form of managerial/entrepreneurial skills (mudarib/ manager).
Profit from the outcome of the partnership is shared between the capital provider and manager according to mutually agreed profit sharing ratio whilst losses are borne solely by the capital provider, provided such loss is not due to the manager’s negligence or violation of specified conditions.
At Asal this product will specifically be used to mobilize funds on investment(savings) account, Fixed Maturity Account, and fixed time call Account. Asal Microfinance, as the mudarib, receives funds and promises the Customer an expected rate of return. Asal can invest the funds in various investment pools and share the (actual) realized profits with the Customer after a specified period on a pre-agreed basis.