Confidential by defaultEstablished 201072 Jurisdictions

Heter Iska

A Heter Iska is a Jewish-law financing agreement that structures an advance wholly or partly as an investment relationship so the provider can receive investment profit rather than prohibited interest on a simple loan.

Also called: Hetter Iska

A valid structure must preserve meaningful investment characteristics, including a genuine route for the managing party to establish losses; it is not merely a document that renames interest as profit. The exact form depends on the transaction and halachic authority used.

In practice

Common mistake: assuming one generic Heter Iska automatically covers every loan, guarantee, mortgage or credit product.

Heter Iska

In practice

See also