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Loan Arrangement

The lender wants to lend 1,000 shekels to his friend, the borrower. The lender will give the borrower a check in shekels. Can the borrower pay him back in cash shekels? Can they make an arrangement to have the loan linked to the dollar rate of the shekel?


A check loan may be payed back in cash.

A shekel loan payed in shekalim linked to the dollar is a matter of dispute whether it poses a problem of Ribbis. A heter iska should be used.


See Igros Moshe Y:D 3:37, Shu”t Shevet Halevi 3:119, Kovetz Bais Halevi 14 pg 152 who rule leniently.

cf. Chut Shani Ribbis pg 79 who is stringent, this was also the opinion of Harav Bentzion Abba Shaul.


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