Banky team Reviewed editorial answerMurabaha is simply a sale, not a loan under a different name.
Key points
The idea is that the bank buys a desired commodity or asset, then sells it to you at a predetermined price that includes the purchase cost and the bank's profit.
You then pay the agreed-upon price immediately or in installments.
The important point for the consumer: ask about the final selling price, not just the profit margin, and make sure you understand what the bank purchased and when the sale took place between you and them.
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.