What is the fundemental difference between profit and interest. I find this very confusing as they sound very similar to me.
Read Ma’ariful Quran of Mufti Shafiee saheb Rahmatullahi Alayhi, Ayat No 275, Surat No.2.
The basic difference is profit is where there is a commodity on at least on side, and interest is where there is money on both sides. So you can’t take money for money with extra. Similarly when two commodities are of similar nature and they are sold by weight or measure then when exchanging them, any extra will be interest. E.g. rice, wheat, dates, etc.
If you have a good quality product and the other party has one of a lesser quality and you were to exchange, then you can’t give one kilo and take two kilos from them.