Can you really get interest-free loans in Islamic countries?

Question

Islam teaches against usury. It says that paying interest on financial loans is wrong. When you open a bank account in Islamic countries, is there really any place where you get no interest on a deposit or pay no interest on a loan? For instance, in Saudi, if you borrow money from your bank, how does the system work?

Answer 1

All the banks in Islamic countries do not follow Islamic Banking.
Some do follow. It works as below:

Example 1: Supose You are a manufecturer (furniture). You need money for raw material.
a) What you have to do is to send them quotations of the raw material. Suppose You needed wood that cost $1000.
b) The bank will purchase it and sale it to you in $1200.
c) You will have to pay $100 to the bank for one year.

Example 2: Supose You are a Business Owner (Any). You need money.
a) You apply for $10000 loan to the bank.
b) The bank will assess the ctual value of your business. Suppose they assess that your business is of $10000 value.
c) The bank will give you $10000 and will become 50/50 partner in your business.
d) On the first month, You will have to return to the bank $1000 in the loan and 50% in the profit. e.g: You earn $100 that month. You will have to deposit $1050.
e) This way you became the owner of 55% and the bank of 45%.
f) Next month you will have to return $1000 from the loan and 45% from the profit.
g) This way you will be able to repay your loan easily and the bank will also not be reluctant to extend you loan.

Answer 2

All the banks in Islamic countries do not follow Islamic Banking.
Some do follow. It works as below:

Example 1: Supose You are a manufecturer (furniture). You need money for raw material.
a) What you have to do is to send them quotations of the raw material. Suppose You needed wood that cost $1000.
b) The bank will purchase it and sale it to you in $1200.
c) You will have to pay $100 to the bank for one year.

Example 2: Supose You are a Business Owner (Any). You need money.
a) You apply for $10000 loan to the bank.
b) The bank will assess the ctual value of your business. Suppose they assess that your business is of $10000 value.
c) The bank will give you $10000 and will become 50/50 partner in your business.
d) On the first month, You will have to return to the bank $1000 in the loan and 50% in the profit. e.g: You earn $100 that month. You will have to deposit $1050.
e) This way you became the owner of 55% and the bank of 45%.
f) Next month you will have to return $1000 from the loan and 45% from the profit.
g) This way you will be able to repay your loan easily and the bank will also not be reluctant to extend you loan