Heter
Iska is a document that lays down the terms and conditions for
structuring loan transactions in such a way that they become an
investment rather than a loan; consequently, the investor’s return of
his capital has the legal status of profit on an investment, rather
than interest on a loan.
If
one made a loan to someone on the security of the borrower’s field, so
that if the borrower does not pay back after three years, the field is
forfeited to the lender, then indeed it is the lender’s, although it is
worth more than the amount of the loan.
