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Shmitat Kesaffim - Pruzbol regarding Heter Iska

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Rabbi Ari Shvat

Adar 16, 5781
Question
Does Shmitat Kesaffim apply to loans made with a heter iska (and no prozbul) or are those loans halachically deemed to be investments and not loans so it wouldnt apply?
Answer
Loans made with a Heter Iska, are officially considered a "half loan and half security deposit". Accordingly, without a Prozbul, Shmitat Ksafim annuls the loan half, and one cannot collect it. Accordingly, all Jews who have used the Heter Iska, should do a Prozbul as we approach this coming Shmitta year, and for sure in Israel, for bank accounts in all Israeli banks, are done based upon the Heter Iska.
את המידע הדפסתי באמצעות אתר yeshiva.org.il