Re: Heroes of Bangladesh ( Must read )
I havent read the replies so might be making an already made point. Afaik, Islamic loans are something like you agree to pay an overly priced fixed amount to the bank, and then act as a tenant paying it off slowly. I still dont quite get how this is much different from interest, but I guess it's not there. An example would be a house costs $500, you want to buy it so take out a loan from the Islamic bank for this amount, but you have to pay back $1000. No interest, just you have to pay back more than the house itself was worth at the time. The end result seems the same as interest to me. There's another form of it too though.
I've already addressed that. You never get a loan from an Islamic bank. Instead the bank buys an asset and sells it to you. Essentially you have a choice between buying at a low price today if you have all the money in your hand, or buying at a higher price but being able to pay over time. In neither case is any money ever lent by anyone, so there is no possibility of interest since it is defined in shariah (in it's most simplistic sense) as any loan which derives a benefit for the lender.