Have you ever wondered if Jews in general, and Orthodox Jews in particular have anything unique when it comes to loans? Well In this page you will get to know about the laws of Jewish Free Loans.
There are nineteen times in the Bible where God prohibits charging interest for a loan. Yes, you read correctly. The bible encourages to help a friend in need with a free loan. Maimonidees writes that lending money for a friend in need is the highest quality of charity!
But before explaining more details it is important to know that anyone, Jew or non-Jew can easily receive a free loan by through a 0% APR and 5% Cash Back Specials credit card. There are many great credit card offers that give you loans for long period of time. On many cards you can even get great rewards for using the card.
And now let me share a story about an interest free loan. Let me begin with a personal story. A close family friend of mine was audited by the IRS. On his Tax returns he had some $300,000 in loans he offered for three business acquaintances. All of the loans were interest free. The IRS requested to see the profits he made on the loans, and he didn't. He received a tax bill for $30,000 of income. The IRS auditor claimed he earned an average of 10 percent of the loans.
So if you're wondering if Jewish free loans are a fact, well it is. Hard to believe it? So was the IRS auditor. In the near future I will hopefully upload much valuable information on the Jewish customs, culture and laws regarding interest and loans. But before that why not check this out?
Have a question, on Orthodox Jewish Matters? Need an answer? Please Email your questions, Chava will answer your questions with insight and wit.