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Halacha - heter iska
Submitted by anonymous  Answered by Rav Yehonoson Hool
Answer: It is forbidden to borrow with interest from any Jew. Interestingly, there was a suggestion that a father may lend money to his young children with interest in order that they should learn the bitter taste of paying interest, and understand how severe is the punishment for those who lend with interest, but the Gemora (Bava Metzia 75a) rejects this and forbids this too.

However, one may lend money using a Hetter Iska, in which case any extra money paid is not actually interest at all.

A Hetter Iska document can be attained from most "Beth Din"s. Have someone explain it to you before signing, as many Poskim hold that someone who has no idea how the Hetter Iska works cannot use such a document.
posted:2009-04-19 12:40:24

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