Payment practices vary around the world. Islamic law is interpreted by many Muslims to mean that interest payments are prohibited by the Koran. In practice, this means that in countries that practice Islamic law:

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In countries that practice Islamic law, borrowing is done through lending arrangements that pay the equivalent of interest, as interest payments are prohibited by the Koran. These lending arrangements are known as Sharia-compliant financing or Islamic finance. They involve the lender and borrower entering into a partnership arrangement, where profits and risks are shared, rather than charging interest.

Payment Practices Vary Around the World