What is Diminishing Musharakah in Islamic Banking? Definition, Types and Example | AIMS UK
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- Опубліковано 31 січ 2022
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Diminishing Musharakah is a unique financing arrangement where the bank and customer jointly own an asset, and the bank's share gradually decreases as the customer makes payments. This financing arrangement can be used for a wide variety of purposes, including purchasing a property, starting a business, or renovating a home. The key benefit of Diminishing Musharakah is that it allows customers to gradually build up equity in an asset, without having to make a large down payment upfront. This can make financing more accessible for many customers who might not otherwise be able to afford it. Additionally, Diminishing Musharakah can provide customers with a sense of ownership and control over their asset from the beginning, making it a popular choice for many Muslims.
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