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The Torah relates to loans as an act of chesed and demands of all who can to lend to those in need, as part of a Jewish life, which is based on charity and justice. True, it is permitted and even recommended for the lender to receive guarantees to ensure repayment of the loan. Someone who lends to someone who is capable of providing guarantors and a lien on property and does not do so, puts his money in a precarious situation.
There is another possibility, which can be a great idea to help someone who needs money but has financial opportunity. He can invest in the latter’s business venture. However, he runs the risk of losing money in the process. Therefore, the greatest chesed is to lend money to one who does not have a livelihood so that he can open a business to support his family. To adapt the famous saying: Give a man a fish, feed him for a day; help start a fishing business, you can help him for a lifetime. The Rambam also put the act of lending money to someone so that he will not need hand-outs at the top of his ladder of chesed (Matnot Ani’im 10:7).
For many reasons, some stemming from very difficult financial times, the Rabbis allowed using a heter iska (a document that turns what might have been a loan into a permitted hybrid between a loan and an investment). We find this already in the writings of the Terumat Hadeshen (I:302), one of Europe’s most influential poskim some 600 years ago. However, there are two major conditions for using a heter iska: 1. The heter iska works for a loan done for an investment when the endeavor has the potential to earn profits. Using a heter iska for a loan to finance standard family upkeep is halachically highly suspect. 2. The "interest" the "borrower" pays to exempt himself from an oath about the success of the investment must be realistic, i.e., it is plausible that the investment could have gone well enough to justify it. If it is in excess of the realistic amount, the iska agreement is invalid, the money given/taken is in violation of the prohibition of ribbit, and beit din can deny the lender’s claim to the money.
We have had cases in the batei din of Eretz Hemdah-Gazit in which we have disqualified heterei iska on these grounds. We mention that the Knesset passed legislation limiting the rate of interest in any loan. We praise that step, which protects the weak from the powerful, which is correct in a Jewish state. (We would have been happier if the law had been more in line with Halacha in other ways.)
Let us pray that the number of those in need of tzedaka will decrease and the number of people happy to help those in need will increase. May they be blessed with the Torah’s blessing for generous people: "… so that Hashem will bless you in all that you do in the Land where you are going to inherit it," and the great psalmist’s blessing, "Goodness and grace shall pursue me all the days of my life, and I will live in the house of Hashem for many long years."
Rabbis in Midrash
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Israel and the Nations A Few Minutes & Many Innovative Ideas on Antisemitism & What to do About It
As we approach the High Holidays, this short lecture (18 minutes) deals with the unfortunate situation of how Israel and the Jewish People stand against antisemitism, analyzing its cause according to Rav Kook, and how to deal with the issue pragmatically & via our prayers.
Ha'azinu PURSUIT is PERFECTION
p. Ha'azinu, Shabbat Shuva
Rav Kook deals with the question of the seemingly hopeless nature of Tshuva. For G-d Himself knows that He created us with free will, which inevitably means we will sometimes make mistakes and choose wrong. This can easily be frustrating, freezing us into inaction and ye'ush (loss of hope). If one sins even once, does he chalila have no choice but suicide?! Moreover, our Godly conscience demands justice, righteousness and perfection, but we all know this is impossible, so what's the solution? Rav Kook's innovative thinking, strongly based on chazal (our sages), offers an inciteful and important aspect to this topic, especially this time of year!
Sukkot Bug-Free Sukkah: Essential Halachic and Practical Schach Guide
How to inspect, clean, and store bamboo mats and palm branches to protect your mitzvah and holiday meals.
