This is an Islamic banking method where banks lend money to a business,and rather than charging that business interest on the loan,they take a share in the profits that are derived from the investment.

Question

Quizplus · Accepted Answer

Mudarabah is a partnership where one partner (the bank) provides funds to the other partner (the business) for investment purposes. The business manages the investment and the bank shares in the profits generated. This method is deemed to be more ethical than traditional interest-bearing loans.

This Is an Islamic Banking Method Where Banks Lend Money