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Question: Apply the rules of Musharakah on a 4 businesses (of your own choice)?

Question: Apply the rules of Musharakah on a 4 businesses (of your own choice)?

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1. Musharakah mutanaqisah home financing : In the case of musharakah mutanaqisah home financing, rental rate replaces interest rate as the benchmark to determine the profit. Rental rate is based upon the market value of the property. The average rental rate is 5.67 percent per annum.The rental rate differs between each type of house, location and amenities available. For example a single storey house would have lower rental in rural area than in town area.

2.slamic scholars agree that musharakah mutanaqisah is best implemented for machinery financing where assets can be leased out according to agreed rental. Joint ownership of a house or asset is accepted by all schools of Islamic fiqh since the financier sells its share to the client.

3. Musharakah equity finanacing: Musaharakah works similar to Equity Financing in the western world, except that capital is based on a share of profit or loss, as opposed to interest based.

4.Musharakah partnership: In a conventional house financing contract, the client has ownership, but his property papers remain in the bank until after paying of all scheduled amounts. ... In Diminishing Musharaka house financing contracts, the client and the bank jointly buy the house on the basis of a debt equity ratio, usually (80:20 or 60:40).

ekkarill92 answered 1 year ago
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