Banky team Reviewed editorial answerA car loan is typically a traditional cash loan to purchase a car with interest, while a Murabaha loan involves the lender purchasing the car and then selling it to you at a fixed price that includes a profit margin.
Key points
For a proper comparison, consider the car's cash price, down payment, total installments, insurance, fees, ownership and warranty costs, and early repayment options.
Don't compare "interest" and "profit margin" as separate figures without considering the overall cost.
The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.