What is the difference between interest (fa'idah) and profit-sharing (musharakah), and do they differ in their legal ruling despite both involving the payment of a certain percentage on a loan? And what is the best option, Islamically, for obtaining a loan to build a house?

Islamic banks were established as an alternative to interest-based (usurious) banks, and they must adhere to Sharia regulations. If a bank adds a percentage to the borrowed amounts, it is an interest-based (usurious) bank, regardless of how this increase is named. Islamic banks, on the other hand, generate their profits by buying and selling goods through Sharia-compliant murabaha. Therefore, one must avoid banks that engage in prohibited transactions and seek out institutions that deal with Sharia-compliant transactions.