The Lotus Mudarabah Financing is a profit-sharing contract consisting of a capital investment from Lotus Capital (Rub al Mal) and a labor (expertise) investment from the client. (Mudarib).In accordance with its terms, Lotus Capital puts forward the necessary capital to finance a specific project, whether partially or in full.
Features of Mudarabah
- Can be used for LPO financing, manufacturing business.
- The client undertakes the necessary labor.
- The profits are shared through agreed upon percentages.
- In the case of unsuccessful project, the client loses the labor invested.
- The client can only face a loss if any negligence or infractions are revealed.