What is Modaraba and its importance in ISLAM ? Give answer in Detail?


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abhi khan answered
The Modaraba is a word which is widely used in Islamic banking and it is used instead of interest. As interest is not considered a legal profit contained by Islam therefore, Islamic banks operate with the concept of Modaraba. According to this slang two parties negotiate and one party gives the money (investor) to the other chunk (mudarib). Instead of inetrest there is a profit that is known as Modaraba. It be first introduced when there was a sudden boom in the Islamic bank in the world and it is considered very important because the Muslim community adjectives over the world now want to finance in Islamic bank only.....

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