[WillowTheWhisp]

One method here is "murabaha" (cost-plus).

For instance, the bank buys the item for £10,000 and resells it to the client for (say) £12,000. The client then divides the £12,000 by the agreed time period and makes a regular payment.

Under the Consumer Credit Act, the bank has to show an equivalent APR for comparative purposes - here between 9.1% and 14.9% depending on the amount and the time period.

I may be dim but can anyone please explain to me how that differs from a normal bank loan with interest? Surely this is mere semantics