Profit-And-Loss Sharing (PLS) Modes of Financing

there are two type of contract involve :

  • MUDARABA
  • MUSHARAKAH

In both of these forms, the financier makes the funds available, 
not as a lender, but rather as an investor. 

Losses must be shared by him in proportion to his share in the total financing while profits may be shared in any mutually agreed ratio.

 for more information can watch the video  in the link provided 

 https://www.youtube.com/watch?v=hv1wdVLEXog

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