Heter Iska Awareness


ribbis-posterIn the ever-changing world of business, it has become increasingly common for business people to fund business projects while using funds from an investor. Often, this means that the capital available to them comes at a much higher rate than they would be paying to any lending institution.

Many people are under the impression that because they signed a heter iska, it is permissible to give or take any amount of interest. In reality, there are many instances in which a heter iska would not permit a particular transaction and the issur de’oraysa of ribbis may be transgressed. Lack of knowledge regarding this is important point what prompted rabbonim and askanim to bring awareness of this to the tzibbur.

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  1. I am a hard money guy and it’s amazing to me that people think we can just download an iska online and we are good to go . Every single deal needs to be run by a Rav who knows choshen mishpat and 90 percent of these deals where people are paying more than 2 percent a month which their free iska that they downloaded are straight up ribbis. It’s a real partnership and if business isn’t making enough to cover lenders fee and for business owner etc to make enough of a spread then it’s a major ribbis issue .