How does Islamic Banking work against normal banking?

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banks make a profit by selling money to people like giving an individual 2000$ but he must return 2100$ later on, in Islamic banks such thing isn’t allowed and I don’t understand how they make any profit

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Anonymous 0 Comments

They don’t charge interest, so you take a loan of $2000 and return $2000 of the loan. But the bank charges a service fee, from which they pay their costs, employees, operating expenses etc, and that can be an additional $100; so in total you pay “$2000 interest free loan + $100 service fees”.

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