Actually they demand to pay more than they would have done in a normal bank, i.e. they are stpd.
one random example:
- I’m afraid, I have to disappoint you. But what is known today as Islamic banking has no relation to Islam. The fact that Islamic banks are more humane and provide an alternative to secular banks is a lie. If you examine closely the system of their work, then you will see that they do not differ from other banks. Therefore, I can tell you that the situation with the debtors in Islamic countries is no different from yours. Moreover, I will say that Islamic banks have generally higher interest rates than secular banks. Therefore, the situation may be even worse.
One of the most popular and phony Islamic finance models is the sale/lease-back structure, known by the exotic name sukuk al-ijara (see here, page 174). The property, or other asset, is immediately sold to a Special Purpose Vehicle (SPV) or bank, which then leases the property back to the original buyer. At the end of the lease the SPV or bank gives the property back to the original buyer completing the transaction.
However, the SPV or bank calculate the propertys price (and the subsequent rental price) by taking into account a whole terms worth of interest. So, just because the customer isnt aware of a monthly interest, does not mean this interest is not present. On the contrary, it has already been added at the beginning of the process.
http://freedomnewsnetwork.co.uk/the-islamic-banking-scam