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A set of Islamic principlesbased on the goal of providing economic justice for allprohibits Muslims from paying or receiving interest during financial transactions. Some Jewish and Christian groups face a similar prohibition.
Is charging interest a sin?
Under the Israel Interest Law 1957, the maximum rate of interest that may be charged on index-linked loans lent in new Israeli shekel is 13% per annum, and the maximum rate of arrears interest is 17% per annum. Additional restrictions apply to the compounding of interest.
Can Jews charge interest to Jews?
This is outlined in the Jewish scriptures, specifically in the Torah: If thou lend money to any of My people, even to the poor with thee, thou shalt not be to him as a creditor; neither shall ye lay upon him interest. Take thou no interest of him or increase; but fear thy God; that thy brother may live with thee.
Can Jews charge interest to other Jews?
7 In partnership arrangements, fixed rates of return are forbidden. 8 All forms of interest-bearing transactions are prohibited between Jews.
What is a shtar iska?
Shtar Iska A form of Heter Iska, which allows for the charging of interest-like fees among Jews in business transactions.
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A Heter Iska is a Jewish religious compliance document which is used where a lender and borrower are both of the Jewish faith, to achieve compliance with Jewish religious rules against the charging or paying of interest on loans between members of the Jewish faith.
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