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Giving Jews business -Heter Iska

Question:

I know that it is generally best to give business to a Jew.
If I will be taking a loan with interest, is it better to take it from a Jewish owned bank with a heter iska (to convert it into an investment)
or is it best to avoid that whole complication and get the loan from a non-jewish bank?
Thank you.

 

Answer:

Thank you for your question.

You are asking an interesting question, and the answer will depend on the specific circumstances. If you are borrowing the money from a private gentile, then it would be better to borrow it from the gentile, because then you are surely steering away from any ribbis issues. This is even though the Jew would not be getting the business. The issue though with borrowing the money from a non-Jewish bank, is that even if the bank is indeed owned by non-Jews, often the bank that lent the money sells the mortgage to another company, which can be Jewish, and then you will be paying the Jewish company ribbis. Believe it or not there are non-Jewish banks in the United States that have a heter iska! If you would like more information on this, you can call the Bais Horaah L’inyonei Ribbis in the States at 1845-493-8604 for more information.

Best wishes

 

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