Is a Heter iska lechatchila?
Is a Heter iska lechatchila
I work as an underwriter for an Israeli fund. The find raises money from Israeli investors, and gives loans with interest to both Jews and non-Jews in the USA.
As the only orthodox Jew in the fund, I have consulted with various rabbonim as to how to deal with the many Ribbis issues that arise in the course of this business. I make sure that a Heter Iska is made for each loan to a Jew.
What concerns me, is that although the owners and borrowers of the fund are aware that there is a heter iska in the loan package,in no way is the being treated as a true partnership, rather as a loan.
On one hand, this is my Parnassah, and I am the only one ensuring there is a proper heter iska, on the other hand, I am bothered by the fact that I am arranging interest loans from jew to jew, even though there is a heter iska, I want to be 100% sure that arranging loans in such a way is upheld by Halacha Lechatchila, and that I may stay at this job with confidence that I am not caught up in the sin or charging Ribbis.
Please let me know your thoughts on this matter.
Although ultimately there is money being loaned, the heter iska structures it as an investment and business venture. With large business loans where the money is in fact being used to invest in various business ventures the heter iska is fully applicable and may be relied upon lechatchila.
When a loan is being used to pay bills or pay for a personal expense, there is room to question if the heter iska is still applicable in it’s fullest sense, and whether it is lechatchila.
sorry for the delay in response.