The Bank takes permission from the depositor to use the deposit according to Islamic Shariah but guarantees that the amount deposited would be available to depositors whenever s/he demands.
The word ‘Musharaka’ has been derived from the Arabic word ‘Shirkat’ or 'Sharikat (Shirk)’. In Arabic, Shirkat or Sharikat or Shirk means partnership or sharing. Thus the literal meaning of 'Musharaka' is sharing though the connotation of this term is limited than the term Shirkat.
A bank guarantee is a written undertaking given by a bank to cover various situations to support exporters or contractors. It is used as a protection against non-fulfilment of another party’s obligations. A Bank Guarantee is an irrevocable obligation, non-cancellable, by the bank