Banky team Reviewed editorial answerThe fundamental difference isn't that one "takes more" and the other doesn't; the difference lies in the structure of the relationship and the contract.
Key points
In conventional finance, the bank typically provides you with money as a loan, which you repay according to the agreed-upon financing cost.
In Islamic banking, financing is based on a contract involving an asset, a benefit, or a partnership, such as Murabaha, Ijarah, or Musharakah.
Each contract carries different terms and risks.
Therefore, don't judge a product solely by the label "Islamic"; understand the contract: who purchased the asset, who owns it at each stage, and the total amount you will pay.