HETER ISKA II There are two basic types of Heter Iska that are written today; one is a “Hatzi Milveh Hatzi Pikadon” (half loan/half investment) and the other is a “Kulo Pikadon” )all investment). As a rule, money for which the recipient takes responsibility, is considered a loan, while money he is not responsible for is viewed as an investment. In a half loan/half … [Read more...]
The Avissar Family Ribbit Initiative Ribbit: Matters of Interest
Gifts to the Lender Sending a gift to the lender as a token of appreciation has a different set of rules. If the gift is sent before the loan is repaid, it is considered Avak Ribbit. If however, the gift is sent after the loan has been repaid, it falls under the category of Ribbit Me’uheret (belated interest) and is subject to the following guidelines. If the borrower … [Read more...]
The Avissar Family Ribbit Initiative RIBBIT: MATTERS OF INTEREST
Greeting as a form of Ribbit & more 1. ONE TIME PENALTIES If the lender issues an interest-free loan but stipulates that there will be a one-time late fee if the loan is not satisfied by a certain date, one would not be subject to the classical Biblical Ribbit prohibition. There is however a rabbinical prohibition. Such an arrangement would be classified as Ha’arama … [Read more...]
The Avissar Family Ribbit Initiative
1. RIBBIS FROM A NON-JEW, PART 2 In our previous issue we spoke about Ribbit from a non-Jew from a Biblical standpoint. Nevertheless, Hachamim forbade lending to a non-Jew with Ribbit, if that Ribbit would’ve been classified as Ribbit D’Oraita. The reason for this decree is in order that we keep our distance and not learn from their way of life. There are however two … [Read more...]
Who is Borrower & Ribbit from a Non-Jew
The Avissar Family Ribbit Initiative 1. WHO IS CONSIDERED A BORROWER? Any time a Jew lends money to another Jew the laws of Ribbit will apply. The title “borrower” in Halacha is applied anytime a Jew borrows money or consumable commodities from another Jew. Furthermore, one who purchases merchandise on credit is also considered a borrower, and the seller – a lender. … [Read more...]