Mudharaba Term Deposit Account

The Mudharaba Term Deposit Account is one of the types of investment accounts in Islamic Banking, established based on a Mudharaba contract between Bank-e-Millie Afghan (BMA) and the Customer. In this type of account, the Customer acts as the Owner or Investor (Rab-ul-Ma’al), who entrusts their funds to the Bank as the (Mudharib). The Bank uses these funds to invest in Shariah-compliant projects or businesses, and the profits generated are shared between the Bank and the Customer according to the agreed terms.

Account Overview

Account Features

In this Account, customers invest their deposits for a fixed term to earn higher profits. Longer investment periods yield greater profits for the customer. The profits from the term deposit are distributed to the customer based on the agreed share of the profits earned. The term deposit account can be opened in various currencies (AFN, USD, EUR, and GBP). Customers can also specify the type of operations in the account or the authorities separately, as singly/anyone, any-two, any-three, or jointly in the account.

Services of the Mudharaba Term Deposit Account
☑ Internet Banking.
☑ SMS Banking.
☑ Electronic Statements...

Account Criteria and Terms

Eligible Individuals
Natural persons (individuals) and legal entities (corporate / institutions).

Fees for the Mudharaba Term Deposit Account
☑ Minimum balance at account opening (initial deposit), 5,000 AFN / 100 USD / EUR / GBP.
☑ Minimum balance maintenance in the account, 5,000 AFN / 100 USD / EUR / GBP.
☑ Account maintenance is free of charges.

Profit and Loss Distribution Mechanism in the Mudharaba Term Deposit Account
☑ Distribution of profits and losses is based on the Contract agreed upon between the Bank and the Customer.
☑ Profit-sharing ratio is, 35% for the Customer (Rab-ul-Ma’al) and 65% for the Bank (Mudharib).
☑ Deduction of 20% tax from the earned profits as per the Country's Tax Law.

Required Documents for Account Opening

☑ National ID Card / Passport for individuals and National ID Card / Passport of Shareholders for Corporate Entities.
☑ Application for opening a Bank Account.
☑ Employement ID Card for Employees, Business License for Self-employed / Business persons, and License / Articles of Association for Corporate Entities.
☑ Tax Identification Number (TIN).