Conventional banking is based on the issue of interest. However, most religious teachings, including Islam, are for the opinion that charging of interest is wrong and should not be prohibited. However, most of the modern banking systems are based on this principle. To steer away from this, the Islamic banking has derived ways of avoiding interest charges. One of these is the use of Murabaha. The essay below looks at the differences between the Murabaha and conventional loans.
According to Hanif (2011, p.170), the trend in the modern banking system in which interests are charged is unacceptable ...