SHARIAH STRUCTURE OF ISLAMIC BUSINESS PRODUCT OF PMRC
- Islamic Mortgage Business of PMRC is based on Shirka-tul-‘Aqd.
SHIRKAT-UL-AQD (BUSINESS PARTNERSHIP):
- Shirkat-ul-‘Aqd (Business Partnership) means an agreement between two or more parties to combine their assets, labour or liabilities for the purpose of making profits and bearing loss (if any).
MUSHARAKA MORTGAGE POOL CREATION:
- PMRC shall purchase mortgage assets at agreed cut-off rate.
- Customer shall create special pool and comingle his share.
- Risk and Reward of these assets will be shared proportionately.
- The customer shall manage this arrangement through equity pool rather than using the general pool.
PROFIT & LOSS SHARING MECHANISM
- The profit-sharing ratio will be pro-rata or any other ratio agreed at the time of contract.
- Loss will be shared as per their proportionate sharing (If any).
- In addition, profit realized more than the Desired Rate will be given to client as incentive as reflected in below chart.