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Q&A: Social Lending

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Originally published:
This is an English translation (via GPT-5.4). Read the original Hebrew version.

Social Lending

Question

Is it permitted to lend money in the form of “social lending”?

Answer

I’m not familiar with it. What is it?

Discussion on Answer

The Secular One (2021-02-03)

I think he meant this.
The idea is simple. On the one hand, there are people who want to give a loan and receive an attractive rate of interest on their available money. On the other hand, there are people with a monthly salary of 5,000 NIS or more who need a loan.

The “company” connects them, verifies their abilities, coordinates their expectations, and makes it happen. (When there’s no need to finance fancy offices and branches, salaries, fat bonuses, and cups of tea… a lot of middlemen along the way simply become unnecessary…)

How is this different from a regular loan, which would involve interest? (If it isn’t done through a sale permit structured as a business partnership, a heter iska.)

The Dissenter (2021-02-03)

By the way, any such offering should be checked at the source. Whether it even operates according to the law. Better not to get entangled…

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