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  • Install CocoDoc onto your Mac device or go to the CocoDoc website with a Mac browser.
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PDF Editor FAQ

If Jews aren't allowed to use usury among themselves, then why do some think it's ok to practice it against non-Jews? Is this proof that the Talmud is kind of a discriminatory book against non-Jews?

Just to set the facts straight:The prohibition against charging interest on a loan, and allowing it when lending to non-Jews is way older than the Talmud, it’s in the Bible (Deuteronomy 23:20–1).The Talmud actually provides a loophole allowing interest called a “Heter Iska” where the lender and borrower sign a contract where the lender essentially “invests” in the borrower in exchange for some of the profits.These days, most business loans, even among Orthodox Jews, include some form of interest using a Heter Iska.Whether the biblical verse allowing interest implies discrimination is up for debate. Consider that at the time the Jewish nation was more of a tribe with strong familial relationships.If I gave a close family member an interest-free loan but refused the same for a random stranger I doubt anyone would consider that practice discriminatory.

Would a heter iska contract be ‘exempted’ from forgiveness during Shmita years and is a Prozbul used in Shimta years, a special “legal” heter?

Heter Iska lets you lend money with interest, and Shmita years allow to forgive/forgo the loan. The question is which one “wins” . The loan can be transferred to the courts, and then it is not forgiven. This was set by the rabbis in the 2nd century so that people are not afraid to give a loan near the end of the Shmita year. So, Heter Iska is not needed in order to make sure the loan is paid.Jewish observant banks in Israel use the Prozbul to avoid a Shmita of loans, with no special Heter.

Are Jews still not allowed to charge interests on loans made to other Jews? If so, how does it work in Israel?

Charging interest is not allowed.To get around this, all Israeli banks have a signed legal agreement which basically turns loans and mortgages into a business partnership (“heter Iska” - Loans and interest in Judaism - Wikipedia).

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