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Heter Iska Today

To what extent should one be makpid to draft a heter iska, and might you please cite examples when a heter iska may be nogaya bzman hazeh?

Thank you.

Answer:

When a loan with interest is made between two Jews, it is of great important to ensure that a proper heter iska is drawn up. This is the only way by which the loan (+interest) can be permitted.

In most circumstances it will also be possible to refer to an already drafted heter iska, and to note that the clauses of the heter iska apply to the relevant loan.

A heter iska is thus relevant for any loan with interest. Note that this answer refers to a “heter iska” (a loan that is represented as an iska) and not to an actual “iska” arrangement (an investment with returns).

Best wishes.

 

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