In Musharaka, we use the GOCB rate as a benchmark to determine the expected profit rate of return. The key distinction is Partnership vs. Loan. Manzil’s Musharaka is a partnership contract, and our profit comes from the sale of a real asset. The bond rate is merely a transparent tool used to price that sale, not to accrue interest on a loan.
Why is your rate pegged to the Government of Canada Bond Rate? [cite_start]Why is it not interest?
In this article:
