Poverty To Profit: Islamic Microfinance - Part 2

HOW ISLAMIC MICROFINANCE WORKS
The Islamic microfinance arrangement falls under the Mudarabah contract, a participative agreement in which one party provides capital (the principal) and the other (the worker) utilizes it for business purposes in which profit from the business is shared according to an agreed upon proportion, and loss, if any, unless caused by negligence or violations of contract by the worker, is borne by the principal. Some considerations include the following:
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