Jewish Lending Institute launched to encourage kosher loans Mortgage Strategy

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The Jewish Lending Institute has been launched to cater for the growing demand for kosher loans among Jewish borrowers.  

The group has been set up by Maxim Cohen, the chief executive of mortgage advisory firm The UK Adviser Group, who says the body aims to “educate and regulate kosher lending within the UK financial services sector”.   

Under the Torah and Jewish law, money lent from a Jewish-owed lender to a Jewish borrower cannot have interest charged on it.  

Interest can only be charged with a document called a Heter Iska, which allows the lender and borrower to enter into a partnership rather than a conventional loan arrangement.  

Under this agreement, the lender becomes a partner in the borrower’s business venture or investment, with the lender’s funds treated as capital invested in the partnership. The borrower assumes the role of the active partner managing the business operations.  

Cohen, who is also an ordained Rabbi, says: “There is not a day that goes by that I don’t speak with Jewish lenders who want to offer kosher lending but don’t know what to do or how to do it.   

“We are working with leading rabbinic experts to make it easier for more Jewish-owed lenders to become Heter Iska compliant and also help borrowers identify lenders that are offering kosher lending.   

He adds: “It is great to see lenders like Together [led by founder and chief executive Henry Moser & commercial chief executive Marc Goldberg] already offering lending with a Heter Iska.”


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