Whether purchasing a home, starting a business or investing capital, people avail themselves of various types of funding on a regular basis. This results in numerous halachic issues and sometimes pitfalls, of which the public may be unaware.

Halachic observance in America has been facilitated by many important kashrus organizations that oversee their respective fields. Today, over 70 kashrus organizations supervise the food industry, and numerous Shatnez laboratories are available to certify the kashrus status of clothing. For many years, Rabbonim have recognized a great need for a similar type of organization to oversee the lending industry. This important breakthrough is finally becoming a reality.

Any loan that involves a bank, mortgage company, hard money lender, credit card company, or other financial institution, may have a potential halachic problem. Namely, if even part of the institution is owned by a Jewish person, the prohibition of lending on interest applies. This is a serious transgression that should never be overlooked!

Unfortunately, there is widespread ignorance regarding this matter. While most yeshiva graduates know on a theoretical level that lending or borrowing with interest involves seven grave transgressions, they have no idea how this applies practically.

If we would backtrack to a hundred years ago, we can draw a parallel to kashrus in the food industry. Due to a lack of organized kashrus supervision, most people were unaware of the potential problems with all sorts of commercially produced food products. Fortunately, today no frum person would take anything into his or her mouth without first checking if it is certified kosher!

In the same way, no frum person should ever lend or borrow money with interest without first checking if the transaction is halachically permitted. Every young couple is inundated with credit card offers, but they should never take out a credit card without ensuring that the company is kosher certified.

“What?” some may wonder. “Kosher certified credit card companies?” It sounds like a novel concept, and it is – but one that’s long overdue. “Anyone taking out a mortgage, home-equity, or other line of credit, may be violating a severe Torah prohibition,” states Rabbi Aron Weider, an expert on finance and halacha for over 20 years. “Since it is common knowledge that many Jews have ownership in various financial institutions that underwrite these loans, dealing with any financial institution without the pre-requisite halachic approval constitutes a serious violation.”

It is well known how harsh the Torah views the transgression of ribbis – usury. Upon the urging of numerous esteemed Rabbonim and Gedolei Yisroel, KFI has been founded to finally correct this lack of halachic oversight. As its name implies, Kosher Financial Institute will set a new standard in kashrus regarding all matters of financing.

As the newly appointed rabbinical administrator of KFI, Rabbi Weider brings two decades of experience in the field, heading the well-known “Business Kahalacha Institute”. The Institute was founded in 2007 on the initiative of the Pupa and Belz Dayan of Montreal zt”l, as well as ybl”ch Harav Yechiel Mechel Steinmetz shlita of Boro Park.

KFI is being launched with the auspices and encouragement of our foremost Gedolim, including Rabbi Yechiel Mechel Steinmetz, Rabbi Shmuel Kamenetsky, Rabbi Sariel Rosenberg, Rabbi Shmuel Fuerst, and Rabbi Naftali Nussbaum. They urge everyone to be careful to deal only with such financial institutions that are KFI certified.

KFI is an official, legal organization operating according to all pertinent rules and regulations and according to the highest level of integrity. Personal and financial information are kept strictly confidential. Banks and lending firms fully respect and trust KFI and are proud to bear its certifying symbol.

What is KFI’s vision of the future? “Just as anyone entering a restaurant or take-out store will first verify the kashrus status of the place,” asserts Rabbi Weider, “so too, within a year’s time or less, every person dealing with a bank, mortgage company, credit card lender or other financial firm, will first ensure that it is KFI certified. We are so grateful that this important improvement to ensure halachic compliance for financial transactions is finally happening!”

Staying informed is easy by signing up for KFI’s automatic email updates. A searchable database of certified financial institutions will keep clients in the know, along with pertinent information about the lending industry and halacha.

Mr. Ezra Goldberg, an experienced mortgage broker for nearly three decades, urges everyone to sign up for free updates www.kfikosher.org “Everyone should become informed regarding all halachic requirements for the lending industry, and stay updated by receiving these important alerts. Personally, I am so relieved to finally have the halachic backing of a knowledgeable and reputable organization. I feel reassured knowing that all our loans are conducted according to halacha. It also helps to have an organized and well-recognized institution check out banks and lenders. I feel confident that a new era in finance and halacha is finally dawning.”

Rabbonim, Dayanim and financial officers across Jewish communities in the United States echo this sentiment. Yes, a new era in finance and halacha is finally dawning.

(YWN World Headquarters – NYC)