From what I understand it is not allowed in Islam to lend someone money for profit i.e. charge interest...
So basically Islamic banks don't charge interest, they charge "fee's instead". So basically if you borrow 10,00Qr from them you will probably end up paying them around 13.000QR or so. So they DO make a profit from lending money just as you would from charging interest!
Makes sense really.. Banks are business's do you really think they are going to give you money for free!
So to me I cant really see the difference wether you call it interest or fee's at the end of the day it's same same but different..
From what I understand it is not allowed in Islam to lend someone money for profit i.e. charge interest...
So basically Islamic banks don't charge interest, they charge "fee's instead". So basically if you borrow 10,00Qr from them you will probably end up paying them around 13.000QR or so. So they DO make a profit from lending money just as you would from charging interest!
Makes sense really.. Banks are business's do you really think they are going to give you money for free!
So to me I cant really see the difference wether you call it interest or fee's at the end of the day it's same same but different..