Heter Iska – For One Who Does Not Own an Apartment
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Question
If I do not have an apartment, can I take a loan
and there will be no issue of interest (ribit)?
and there will be no issue of interest (ribit)?
Answer
Shalom u’vracha.
Since it is required that the borrower have an “iska” (a business investment/venture) for which he is taking the loan, and in practice an average person does not have an “investment” equal to the value of the loan, we use an apartment as part of a “business”, because it is common that an apartment can generate profit, and its value also steadily increases.
Therefore, for one who does not own an apartment, there is a serious problem with taking a loan under a “heter iska”. The only possible heter for him is if he possesses some other form of “business” (investment asset).
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