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Loaning mony to another

Question:

If I borrow money on a credit line, which I lent to another, and when this other repays me , am I allowed to accept also the interest charged to me by the bank, for the loan?

Answer:

Your loan from the non-Jewish credit company is your loan and you can take that out with interest and repay them interest.

Your loan to your Jewish friend is a separate transaction and must either be interest free or done with a heter iska.

You can ask your Jewish friend to pay all fees and  charges you incurred in taking out the loan but not the interest charges for the loan. Were you to do that, in effect your loan to your Jewish friend is a loan with interest and the way that you are asking him to pay you is by paying your own debt to the credit institution that lent you the money.

Rav Baruch Rubanowitz

Rav Baruch Rubanowitz

Rav Baruch Rubanowitz hails from Los Angeles, California and has studied in various yeshivos across the United States and Israel. He received semichas Yoreh Yoreh while still a bochur at Beis Medrash Gavoha in Lakewood, N.J. Subsequently, after moving back to Eretz Yisroel, he received semichas Yadin Yadin from Rav Yosef Cohen, and semicha on the entire Shulchan Aruch from Rav Zalman Nechemiah Goldberg and Rav Shlomo Fisher. Rav Rubanowitz founded Kehillas Shivtei Yeshurun and Talmud Torah Yishrei Lev in Ramat Bet Shemesh and served as the rav of the Kehilla for many years. He is a qualified shochet, a practicing Dayan, mediator, mohel and Rav of Kehillat Kol Rina in Nachlaot, Yerusholayim. His rebei'im, most notably, Rav S. Fisher, Rav Z.N. Goldberg, Rav Simcha Wasserman, Rav Yaakov Weinberg, Rav Gustman, Rav Kulefsky, Rav Abba Berman and Rav Zvi Berkowitz, have had significant influence upon Rav Rubanowitz’s approach to Torah, halochoh and counsel.

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2 Comments

  1. Would it make any difference if my friend paid for the interest directly to the bank?
    My friend never gave me anything? She just wants to go to the bank and pay directly?

    Reply

    1. It makes no difference if they pay you directly or pay directly to the bank.
      As long as the bank sees you as the one who took out the laon and will pursue you for repayment, in effect your friend is paying your debt. Since she owes you the money and not the bank there is a violation of paying interest when she pays your debt to the bank.

      Reply
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