Musharaka means partnership. Two or more persons jointly contribute capital and share profit as per agreed ratio and loss as per capital ratio. Under this mode Bank participates with its client as a partner of an enterprise. The Islamic Shariah principle of Musharaka is Shirkat-Al-Inan which means profit is divisible as per agreed ratio irrespective of capital contribution whereas loss is borne strictly on the basis of capital contribution of the partners involved.
