Loan from an overseas asset management company
Hello Rabbi,
I have an overseas investment account that is managed through a brokerage firm called Interactive Brokers. The company allows you to enter into an intentional overdraft (which is like taking out a loan) and charges interest on it. The question is whether it is permissible to take out such a loan for various investment purposes, or is there a concern that interest is prohibited. As I understand it, there are two sides to the equation:
- This is a company and not a person, and therefore perhaps interest prohibitions do not apply to a loan between a person and a company.
- This is a business abroad, and every single one is different, meaning that the business is probably controlled or owned by Gentiles (although it is possible that some of the shareholders in the company are Jewish, but here too we might say that the majority of them are).
Best regards,
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0 Answers
In general, I tend to be very lenient in these matters. Because the prohibition of interest in its original form was certainly not designed for our modern situation vis-à-vis companies and banks, etc. Therefore, I would be lenient here based on your considerations, even though there are rabbis who are stricter about this.
Now I thought of another consideration: that an overdraft is not exactly a normal form of loan (because you decide and you take, and not that the lender gives, but only gives permission to take), and perhaps this too should be seen as uncut interest.
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