Hey, if someone wants to lend money interest free, go right ahead. It’s value to the nation can probably best be seen by looking at Muslim countries that don’t have oil. They are all dirt poor with very little possibility of upward mobility. It’s one of the main causes of poverty in Muslim countries.
I would love to make Sharia loans, as they benefit the lender immensely. In a modern loan, I loan you $100,000 at 6% interest for 10 years. If you pay on time and to term, you end up paying me $133,225. If you come into money (or refinance into a better loan, etc.) and pay me off in a month, you end up paying just a bit over $100,000.
Sharia loans are 0 coupon (no interest.) You take out a loan for $133,225, which is due in 10 years (actually it would be somewhat more, as the implied interest rate would be higher due to the fact that the loan is a 0-coupon bullet.) I give you $100,000. If you decide to pay me off in one month, you still have to pay me the full principle - $133,225.
I would make that loan every single day.