Dec 042016
 

In what manner can people invest with others and share the profits without being concerned about it being interest?  This is called an iska and is allowed as long as the one who receives the investment and does the work gets some sort of minimum salary so that the investor doesn’t get a service for free (which would then be perceived as an interest payment).  There is a debate about how much salary one needs to give – how minimal it can be.  Various cases and situations are described to explain what methods of investing are and are not allowed.  Renting out money is not the same as renting out an item for two reasons described in the gemara and therefore it is forbidden.  One can lend out money with interest if the lender is not the one who receives the interest or the borrower is not the one who pays the interest – meaning there is a third person who pays or gets the interest – as long as he is not acting as a messenger of the lender or borrower.

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