[mooktakim]

Islamic finance is a fairly complicated subject. As someone who has no background in finance, I have been trying to understand some basics.

But overall, what I understand is that for a bank to give out loans, they must also provide every opportunity to help those who are borrowing money. For example, they can extend the payment, provide advice etc

The main thing about Islamic finance is that it is all asset based. You can take a loan to buy a car, but you can't take a loan to renovate a house etc. This is to stop people from borrowing when they can't possibly pay back. There are few models for unsecured loans. But, as I said, its very complicated.