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Murabaha is a sale contract with a bank whereby, the bank purchases the goods, and then resells them to the client with an agreed upon profit margin.& Mudaraba is a partnership w/the bank where they provide 100% of the funds and you provide expertise

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What are the differences between Ijarah and Murabaha?

The main difference between Ijara and Murabaha is that with an Ijara mortgage, the property will not immediately be registered as belonging to you. Instead, you will essentially rent the property from your lender. In addition to the agreed monthly repayment amounts, you will also pay monthly rent to the bank. At the end of the agreed term or once the purchase price has been repaid in full, ownership of the property is transferred from the lender to you.


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