Glossary
59 microfinance terms, explained
Plain-English definitions with formulas and worked examples — for loan officers, finance teams, board members and the developers building for them.
All 59
Financial performance 4Institution types 4Islamic finance 4Lending 11Operations 4Outreach 3Payments 5Portfolio quality 14Regulation 6SACCO 4
M
Mudarabah
A profit-sharing partnership: depositors provide capital and the institution manages it, splitting profit by an agreed ratio. Losses fall on the capi…
Islamic financeMurabaha
A cost-plus sale: the institution buys an asset and sells it to the member at a disclosed markup, paid in instalments — used instead of an interest-b…
Islamic finance