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Islamic banks are issuing loans without interest to this day. They have a clever fee schedule though, and I'm not sure it works out any differently for the bor
by delazeur 9y ago
Islamic banks are issuing loans without interest to this day. They have a clever fee schedule though, and I'm not sure it works out any differently for the borrower at the end of the day.
- exclusiv 9y agoThere was a Planet Money episode [1] where a bank setup a no-interest loan to a Muslim family because Islamic law prohibits charging interest. In the end it was basically just a workaround that was effectively the same as charging interest and that same Muslim family ended up taking a conventional loan when they moved instead of an "Islamic-compliant" mortgage because it was a lot easier. [1] http://www.npr.org/sections/money/2016/05/13/477956675/episode-701-a-bank-without-interest http://www.npr.org/sections/money/2016/05/13/477956675/episo...