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So ... I understand you're not allowed to lend money to another Jew with interest, I won't get into the question of why.

Does this mean you're also not allowed to accept money from another Jew, where the contract dictates you need to pay an interest on this loan? E.g. a standard bank loan in Israel?

I assume that whether that other Jew is an atheist or not has no bearing on the matter, correct?

  • there are at least 2 separate questions here -- one being about the Israeli banking system and one about the responsibility of the borrower when entering into a loan contract. There are many opinions about the latter question reflected in articles online. Here is one to start with jlaw.com/Articles/ribis6.html . This article says that the borrower may not pay the interest of any sort, so it is on him as well as the lender torah.org/advanced/weekly-halacha/5757/behar.html – rosends Jan 25 '13 at 14:06
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    @Dan, I think it's only multiple questions from the POV of someone who already knows more than this question's POV assumes. A complete answer would explain what you and DoubleAA have as well as heter iska. – Isaac Moses Jan 25 '13 at 14:38
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The Mishna (Bava Metzia 75b) lists the different people who violate Biblical prohibitions when a loan is given with interest:

ואלו עוברין בלא תעשה המלוה והלוה והערב והעדים וחכמים אומרים אף הסופר
These violate a negative commandment: the one who loans, the one who borrows, the guarantor, the witnesses, and the Sages say even the scribe who writes the document.

(The Gemara below explains that the scribe would be in violation of putting a stumbling block before the blind by allowing the others to perform the violation.)

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