Process Of Islamic Banking With Zero Interest Rate Loan

Mashreq Bank20 Jul, 2020Business

There are two ways in which Islamic banking works and these are very important to understand. The first one is very simple and this procedure includes the bank to purchase a good or commodity that borrower needs and barter it to the borrower. All of the processes is done on regular installments, in such way banks earn a profit based on the profit made by the borrower. Thus it ruled out the interest for both parties.