Difference Between Paying Back The Money And Paying For The Commodity
So to reshape the same example,i took 3 million loan from bank and bought a house,on that they asked me interest also,so if i buy myself and give bank extra money, it’s interest, but if bank but and takes extra money it’s rent. Both places,the same thing is happening.
In the first case, bank does not bother where you use you money, if you like to give bank the house instead of money, the bank won’t accept it, it will demand money. but in the second case, bank gives you house and if you give it the house bank, the bank will accept it. The difference is that if you take loan, and you lose the money, you have to reproduce it. but in the case of house you need not to reproduce the house.