Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Group Members
Islamic Modes
of
Financing
Agenda
Introduction
Islamic Principles of
Transactions
Cont‟d
Cont‟d
Cont‟d
History
History Cont‟d
History Cont‟d
Current Position:
Islamic Modes of Financing
Cont‟d
Mushaarakah
• “Mushaarakah” literally means sharing
• It is derived from “shirkah” which means
“being a partner”
• Joint e...
Rules of Mushaarakah
• Assets of Mushaarakah are jointly
owned in proportion to the capital of
each partner.
• loss [by ge...
Cont‟d
Ratio of profit:
Must be equal to ratio of investment - Imam
Malik & Imam Shaafi„ee
Does not have to be equal – ...
Management of Mushaarakah
• Each partner has a right to take part in
Mushaarakah management.
• The partners may appoint a ...
Cont‟d
• If one or more partners choose to become
nonworking or sleeping partners, the ratio
of their profit cannot exceed...
Mudaraba
• An arrangement in which two entities
are involved
Mudarib
Rabbulmal
Cont‟d
• Mudarib who runs the business can be
a natural person, a group of persons, or
a legal entity and a corporate body...
Cont‟d
• Conduct of business shall be carried out
exclusively by the Mudarib within the
framework of mandate given in the
...
Cont‟d
• Financial losses of the Mudaraba shall be
borne solely by the Rabbulmal, unless it is
proved that the Mudarib has...
Cont‟d
• The liability of Rabbulmal is limited to his
investment unless otherwise specified in the
Mudaraba contract
• Mud...
Murabaha
Murabaha
ISLAMIC SALE
SOLD GOOD OR SUBJECT MATTER
( Mube‟e )
CONTRACT
SUBJECT
MATTER
CONTRACTORS
WORDING OF
CONTRACT
•Specified
•Quantified
•Non-restricted
•Sane
•Mature
•Present
•Unc...
31
Step by Step Murabaha
32
Stage One (a) for Murabaha
financing
1- Promise stage
Facility
approved
Bank Client
33
Stage One (b) for Murabaha
financing
Cont’d
Murabaha
Facility
Agreement
MOU
Bank Client
34
Stage One (c) for Murabaha
financing
Cont’d
purchase
requisition
/Promise to the
bank.
Bank Client
35
2- Agency stage
Agency
Agreement
Bank Client
Agreement to
Murabaha
36
Cont’d
Stage Two for Murabaha financing
Agreement to
Murabaha
Agency
Agreement
Disbursement to
the Supplier
Islamic
Ban...
37
3. Acquiring Possession
Stage three for Murabaha
financing
Client purchases
goods and takes
possession
Transfer of Risk...
38
4. Execution of Murabaha
Stage four (a) for Murabaha
financing
Offer to
purchase
Bank Client
39
4. Execution of Murabaha
Stage four (b) for Murabaha
financing
Murabaha
Agreement
+
Transfer of Title
Bank Client
40
Cont’d
Stage four (b) for Murabaha financing
Payment of PriceBank Client
Cont‟d
Cont‟d
IJARAH
Ijarah
45
BASIC RULES OF IJARA
BASIC RULES OF IJARA
BASIC RULES OF IJARA
BASIC RULES OF IJARA
Cont‟d
Salam & Istisna
Salam
Conditions
As mode of Financing
Istisna
validity of Istisna‟a
Terms and conditions
Conclusion
Cont‟d
Islamic modes of finance
Islamic modes of finance
Islamic modes of finance
Upcoming SlideShare
Loading in …5
×

Islamic modes of finance

5,567 views

Published on

Published in: Business
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Islamic modes of finance

  1. 1. Group Members
  2. 2. Islamic Modes of Financing
  3. 3. Agenda
  4. 4. Introduction
  5. 5. Islamic Principles of Transactions
  6. 6. Cont‟d
  7. 7. Cont‟d
  8. 8. Cont‟d
  9. 9. History
  10. 10. History Cont‟d
  11. 11. History Cont‟d
  12. 12. Current Position:
  13. 13. Islamic Modes of Financing
  14. 14. Cont‟d
  15. 15. Mushaarakah • “Mushaarakah” literally means sharing • It is derived from “shirkah” which means “being a partner” • Joint enterprise formed for conducting business • Profit & loss
  16. 16. Rules of Mushaarakah • Assets of Mushaarakah are jointly owned in proportion to the capital of each partner. • loss [by general consensus] is always subject to the ratio of investment.
  17. 17. Cont‟d Ratio of profit: Must be equal to ratio of investment - Imam Malik & Imam Shaafi„ee Does not have to be equal – Imam Ahmad May differ, except that a sleeping partner cannot share the profit more than the percentage of his capital – Imam Abu Hanifah
  18. 18. Management of Mushaarakah • Each partner has a right to take part in Mushaarakah management. • The partners may appoint a managing partner by mutual consent. • One or more of the partners may decide not to work for the Mushaarakah and work as a sleeping partner.
  19. 19. Cont‟d • If one or more partners choose to become nonworking or sleeping partners, the ratio of their profit cannot exceed the ratio of their capital investment. • Any partner can liquidate his shares and leave the partnership according to the contract or by mutual consent of other Partners.
  20. 20. Mudaraba • An arrangement in which two entities are involved Mudarib Rabbulmal
  21. 21. Cont‟d • Mudarib who runs the business can be a natural person, a group of persons, or a legal entity and a corporate body. • Rabbulmal (Investor) shall provide his investment in money or species
  22. 22. Cont‟d • Conduct of business shall be carried out exclusively by the Mudarib within the framework of mandate given in the Mudaraba agreement • The profit shall be divided in strict proportion agreed at the time of contract
  23. 23. Cont‟d • Financial losses of the Mudaraba shall be borne solely by the Rabbulmal, unless it is proved that the Mudarib has been guilty • The loss, if any, shall be shared in proportion to the capital of the parties.
  24. 24. Cont‟d • The liability of Rabbulmal is limited to his investment unless otherwise specified in the Mudaraba contract • Mudaraba may be of various types • The Mudarib can invest his funds in the business of the Mudaraba with the permission of Rabbulmal
  25. 25. Murabaha
  26. 26. Murabaha
  27. 27. ISLAMIC SALE
  28. 28. SOLD GOOD OR SUBJECT MATTER ( Mube‟e )
  29. 29. CONTRACT SUBJECT MATTER CONTRACTORS WORDING OF CONTRACT •Specified •Quantified •Non-restricted •Sane •Mature •Present •Unconditional •Non-contingent
  30. 30. 31 Step by Step Murabaha
  31. 31. 32 Stage One (a) for Murabaha financing 1- Promise stage Facility approved Bank Client
  32. 32. 33 Stage One (b) for Murabaha financing Cont’d Murabaha Facility Agreement MOU Bank Client
  33. 33. 34 Stage One (c) for Murabaha financing Cont’d purchase requisition /Promise to the bank. Bank Client
  34. 34. 35 2- Agency stage Agency Agreement Bank Client Agreement to Murabaha
  35. 35. 36 Cont’d Stage Two for Murabaha financing Agreement to Murabaha Agency Agreement Disbursement to the Supplier Islamic BankBank Client
  36. 36. 37 3. Acquiring Possession Stage three for Murabaha financing Client purchases goods and takes possession Transfer of Risk Vendor Bank Client
  37. 37. 38 4. Execution of Murabaha Stage four (a) for Murabaha financing Offer to purchase Bank Client
  38. 38. 39 4. Execution of Murabaha Stage four (b) for Murabaha financing Murabaha Agreement + Transfer of Title Bank Client
  39. 39. 40 Cont’d Stage four (b) for Murabaha financing Payment of PriceBank Client
  40. 40. Cont‟d
  41. 41. Cont‟d
  42. 42. IJARAH
  43. 43. Ijarah
  44. 44. 45 BASIC RULES OF IJARA
  45. 45. BASIC RULES OF IJARA
  46. 46. BASIC RULES OF IJARA
  47. 47. BASIC RULES OF IJARA
  48. 48. Cont‟d
  49. 49. Salam & Istisna
  50. 50. Salam
  51. 51. Conditions
  52. 52. As mode of Financing
  53. 53. Istisna
  54. 54. validity of Istisna‟a
  55. 55. Terms and conditions
  56. 56. Conclusion
  57. 57. Cont‟d

×