Any Difference Between Murabaha in Islamic Banks and Conventional Bank Loan?
Assalamu Alaikum.I have been hearing about Islamic Banking services in Arab Countries.I studied about it formally and came to know that one of the prime functioning of these banks, was that of the 'Murabaha'.My question is, how does the ca r loans and other products offered by conventional banks, differ from the Murabaha concept of Islamic banking, while the former calls its collection of excess money (of a vehicle, for instance) from the market prize as interest, and the latter (Islamic banking system) calls it some other name.What output difference does the two has?If there is no practical difference, then how is it that we are able to tell our system of banking is free of interests offered by the conventional banks? Please help me understand the concept. Your efforts are appreciated and may Allah guide us in the right path.Wassalam Alaikum