Questions tagged [lending-interest-ribbis]

The prohibition on lending or borrowing at interest. Also known as usury.

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12
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2answers
398 views

ribis and foreign currency conversion

I am afraid that I have only recently started to study this kind of thing and I completely unlearned compared to most of the contributors here, so I apologize if my question is somewhat ...
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5answers
2k views

Why does the Torah forbid interest only on loans to Jews?

Why aren't we allowed to charge a Jew interest but we're allowed to charge a non-Jew?
11
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1answer
591 views

Peer-to-Peer Lending Websites

There are websites (such as Prosper.com or LendingClub.com) which allow laypeople to lend money to borrowers with interest. For example, a typical listing posted by a potential borrower is one in ...
10
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2answers
119 views

Receiving interest from a convert

Is it permissible to receive interest on a loan made to a convert if the loan agreement was made before the conversion and repaid after?
9
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1answer
157 views

How do you pay a debt (not a loan) in a different currency?

Shimon, in Eretz Yisrael, makes a purchase on behalf of Reuven, in the diaspora. For Reuven the cost of paying in shekels would be quite high, but Shimon can receive the payment in another currency ...
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2answers
235 views

Why is this not a valid way of evading the prohibition of ribbis?

Shulchan Aruch, Choshen Mishpat 292:7 states the following halachah (from Bava Metzia 43a): If Reuven deposits money with Shimon (a moneychanger or storekeeper) for safekeeping, Shimon is entitled ...
8
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1answer
302 views

Transfer of loan / mortgage from non-Jew to Jew

What happens if a Jew borrows money on interest from a non-Jew, and then the lender turns around and sells the debt to a Jew? (Such transactions are very common in the mortgage industry.) Is it ...
8
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1answer
249 views

Am I allowed to get miles or points for a loan?

Suppose me and my good friend Shimon are in a store shopping. Shimon wants to borrow $100 from me for his purchase. I graciously agree, but instead of giving Shimon cash, I swipe my credit card for ...
8
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2answers
379 views

Are late or overdue fees Ribbis?

If I take out a library book, and they charge me $.10 per each additional day extra. Or if I owe money on a bill, and they charge me a $10 late fee for being overdue. Are these a case of Ribbis? Or ...
8
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1answer
1k views

How do Interest Loans work in Israel?

From my understanding, banks in Israel still issue loans at an interest whether it be for commercial businesses or new home owners. However, I was also told that they have a process in Israel where ...
7
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2answers
86 views

Why are the halachot of Ribit (interest) in Yoreh Deah

The halachot of ריבית seem to be a monetary issue having to do with borrowing, lending, and general business issues. As such it seems like they should be in חושן משפט, but they're not - they're in ...
7
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1answer
171 views

Are magazine subscriptions ribbis?

There are many Jewish weekly or monthly publications (e.g. magazines) that offer the following deal: Individual copies of the magazine are priced at say, $5 each. But, if you "subscribe" by paying in ...
7
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2answers
444 views

Is returning a car with a full tank of gas a problem of ribis (interest/usury)?

I was told that if you borrow a car from a friend, it's courteous to return it washed, and with a full tank of gas (even if the car was dirty and had an empty tank when you borrowed it). Is there any ...
7
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1answer
312 views

Corporations, Jewish Shareholders and Interest

How many Jewish shareholders does a corporation or bank have to have in order for the prohibitions on lending or borrowing at interest to apply? Is one Jewish shareholder sufficient, or does it ...
6
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3answers
902 views

How is a heter iska made to work with a non-business loan?

I understand that a heter iska is basically a method of restructuring a loan as an investment, done in such a way that the lender/investor is more-or-less guaranteed to get his capital back, plus a ...
6
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1answer
257 views

Lending Money and Inflation

When lending money, Jews are not allowed to charge other Jews interest. However, due to inflation, the value of money decreases with time, such that the money that is repaid is worth less than that ...
6
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3answers
180 views

If one borrowed 4 eggs from a neighbor, and found a bloodspot in one of them: Must/may he return 4 eggs or 3 eggs?

If one borrowed 4 eggs from a neighbor, and found a bloodspot in one of them: 1- Must/may he return 4 eggs or 3 eggs? 2- If he returns 4 clean eggs, wouldn't this be an issue of Ribbis, since he is ...
6
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2answers
1k views

An actual Heter Iska Agreement

Can anyone provide a copy of an actual heter iska agreement used for example by a bank in Israel for purposes of business loans or mortgages? I don't mean a haskama that such and such bank operates ...
6
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0answers
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Do the laws of Ribis apply to loans of virtual currency?

If a Jew lends a player in a multiplayer online game money, and he knows without a doubt that that player is Jewish, does the prohibition of ribis apply? (After all, the only thing that changed was a ...
5
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3answers
88 views

Why “אִם” used by lending money?

In Mishpatim (22:24) the pasuk uses the term "אִם" when describing the mitzvah of lending to the poor. אִם-כֶּסֶף תַּלְוֶה אֶת-עַמִּי, אֶת-הֶעָנִי עִמָּךְ--לֹא-תִהְיֶה לוֹ, כְּנֹשֶׁה; לֹא-...
5
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2answers
174 views

Can donating to a Gemach be ribbis?

Suppose that Reuven is strapped for cash. He goes to the local Gemach and gets a hefty $10,000 dollar loan for his daughter's wedding. 3 months later, Reuven manages to acquire the money and repays ...
5
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2answers
179 views

Ribbis and Ona'ah in Monopoly

In a game like Monopoly, where the "money" is absolutely worthless, would charging ribbis (interest) or ona'ah (overcharging/undercharging) be permissible? That is, if a player owned, say, ...
5
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1answer
90 views

Repaying a loan and processing fees

Here's the (hypothetical, of course) scenario: Reuven borrows $20 from Shimon. The easiest way for Reuven to pay back the money would be to send it through one of those new-fangled fancy electronic ...
5
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1answer
68 views

Why are some sins counted twice?

I am looking to understand the theology behind a negative commandment being repeated in the Torah in order to make whomever transgresses it punishable for 2 sins. See for example Rashi on Vayikra 25:...
5
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1answer
113 views

How does Beis Din handle loans with interest?

If a borrower and a lender go to Beis Din with a loan document that stipulates interest, but the borrower claims he can at least collect the principle, how does Beis Din look at that? Do they ...
4
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1answer
131 views

If magazine subscriptions are ribbis, are bus tokens, postage stamps, and other pay-in-advance items also ribbis?

This answer to another ribbis question indicates that deals of the form "subscribe and save X% over news-stand prices" are ribbis and thus forbidden. Does this principle apply to other items you pay ...
4
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2answers
68 views

Does Ribbis apply to services?

When one lends someone money they many not charge them interest. When one lends someone an item the item returned has to be identical or else it may be Ribbis. Suppose you have a carpool with a ...
4
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2answers
120 views

replacing a used borrowed item which broke with a new item which is more valuable

If a person borrowed an item from a neighbor (such as a plastic chair) and the item broke due to negligence by the borrower. Can the borrower purchase a new identical item and give that back to the ...
4
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1answer
67 views

Ribbis offsetting a default

Suppose a Jew charges and receives interest from a Jew, only finding out that the other party is Jewish after. He should refuse the interest. BUT he knows that the debtor has defaulted on a debt to ...
4
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1answer
101 views

Compromising a Doubtful Loan and Ribbis

First let's get the case: Reuven lends $100 to Shimon to be paid back in a year. There is no record of the amount of the loan. And then, one month later, one of the following happen: Shimon ...
4
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0answers
103 views

Is one allowed to short sell stock?

Short selling stock involves borrowing the shares for a fee. Would doing so contravene Devarim 23:20 which prohibits borrowing with interest (assume the Jewishness of all parties involved is such to ...
4
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0answers
180 views

Reason for prohibition of charging interest [duplicate]

The Torah says that charging interest on a loan to a Jew is prohibited, but to an idol worshipper it is permitted. My question is why? I can think of three possible answers: 1) There is a time value ...
4
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0answers
80 views

Forbidden business practices in games

Charging interest or surplussage on real loans to a fellow Jew is forbidden but may one do so with in-game play money or with in-game commodities?
4
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0answers
110 views

Problem of Ribis in giving loan in order to give Tzedeka

(In order to understand the dinim of Ribis and if this particular case would be problematic I will give a localized example. However please don't close the question or say it's too "local" because the ...
3
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1answer
979 views

Are you allowed to borrow money from another Jew with interest?

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 ...
3
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1answer
97 views

Is there a prohibition of paying interest misafek (doubt)?

Reuvain borrowed money from Shimon, and both are unsure if it was ever payed back. Now, of course Shimon can't claim any money from Reuvain, but if Reuvain wants to pay him back out of doubt, should ...
3
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1answer
121 views

Not paying interest

Suppose someone asks his friend for a loan and he says "sure, no problem, but there is interest that comes along with that". Later, the borrower repays just the principal and says "the Torah forbids ...
3
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1answer
132 views

Is requesting early payment on a loan considered a (prohibited) form of interest?

Can a Jewish-owned business that extends interest-free house account/credit, billable on a monthly basis (as per signed agreement), demand early payment? Would this be considered taking interest, as ...
3
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1answer
100 views

Paying more for an item — Ribis?

I will ask the question using the following scenario: Reuvan wrote a sefer that he was charging for it 50 Shekels. Came along Shimon who wanted to buy the sefer. At that time he didn't have money on ...
3
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1answer
172 views

Would an Islamic Bank Account be preferable to a Jew?

Islamic bank accounts do not involve interest or fees for loans of money and prevents the bank from investing your money in various questionable businesses, like the pork and sex industries. Would it ...
3
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1answer
123 views

Pawnshop Interest in Halacha

Suppose a Jewish fellow needs a loan of $50,000 and has been declined by the bank due to his credit record. The local Gemach can not lend such a large sum so he decides to give his expensive car as ...
3
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1answer
141 views

When is Fixed Interest Allowed?

It says in an article at VBM Torah: It should be remembered that Halakha makes explicit mention of particular bodies to whom it is permissible to lend at interest (e.g., the community) So what ...
3
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1answer
69 views

Time-limited promotional giveaways for some, fees for everyone later

If someone provides a discount for early payment, and raises the price for others, there is reason to consider this a form of forbidden usury. What if someone is giving away a gift to some as a time-...
3
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1answer
105 views

Insurance and Ribit

What is the halachick treatment of a long term insurance contract issued by a company held by a Jew? In particular - Is the underlying investment that contributes to the ultimate amount of the ...
3
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0answers
47 views

Do convertible bonds issued between Jews conform with Halakha of interest?

A convertible note (a.k.a. "convertible bond") is a financial instrument that is a hybrid between debt and equity in a business. The way it works is that an investor invests some money in a company, ...
3
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0answers
23 views

Is sharing a biweekly salary with a coworker in return for the same considered ribbis?

The Remah in Yoreh Deah 160:9 (יורה דעה סימן קס סעיף ט) writes: וְאִם אֶחָד מַלְוֶה מָעוֹת לַחֲבֵרוֹ עַל זְמַן מָה כְּדֵי שֶׁיַּחֲזֹר וְיַלְוֵהוּ פַּעַם אַחֶרֶת כַּזְּמַן הָרִאשׁוֹן, יֵשׁ אוֹמְרִים ...
3
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0answers
195 views

Is there Ribis in America?

Rav Moshe Feinstein, z"l, is lenient with regard to allowing the loaning of money to a corporation because he maintains that the prohibition of ribis (usury) only applies where there is a shibud haguf ...
3
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2answers
149 views

Is investing problematic?

Are there any issues involved in investing in stocks or other mediums owned by a Jewish company? I am referring to ribit (interest).
3
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0answers
74 views

What defines a loan and interest?

What specifically is it that defines a loan ( as opposed to an investment / partnership ) and interest ( as opposed to profit ) under Jewish law? This is what I've come up with: Regarding an ...
3
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0answers
75 views

Charging interest to “your brother”

A deleted post from a long time ago made the claim that [W]e are [allowed to charge interest to other Jews] but not from immediate family. Even from another Jew, if he or she is not a member of ...