I borrowed money from a family member over 15 years ago to save my home. Due to health and other factors, unfortunately I have not been able to repay it yet or make payments.

The Heter Iska says “We have agreed to the condition that if the recipient will give 12% of the money deposited in her charge per year to the investor, the investor will have no further claim to the rest of the profit .”

If I am able to raise funds to repay it, do I add in 12% of the principal for each of the 15+ years or would the interest be compounded (which would be substantially more ) for some reason even though that is not mentioned in the document ?


I think the wording of the Heter Iska means  that you only have to repay 12% of the principal for each of the 15+ years, other wise it should have been worded differently and been more explicit.



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