371:, there were certain conditions similar to interest which were permitted. For example, Maimonides states that a person can offer money to a second person attaching a requirement for the second person to give a certain larger amount of money to a third person, or a requirement for the second person to persuade a third person to lend a certain larger amount of money to the first person. When a non-Jew was involved, Maimonides argues that interest could be charged; indeed, Maimonides argues that it was compulsory to charge interest on loans to non-Jews, but he also suggests that such loans should be restricted to being within narrow limits, to avoid the lender becoming so keen on usury that they practice it against other Jews.
233:. These societies regarded animate matter as alive, like plants, animals, and people, and it was considered capable of reproducing itself. Hence, if one lent "food money," or monetary tokens of any kind, it was legitimate to charge interest. Food money in the shape of olives, dates, seeds, or animals was lent out as early as c. 5000 BCE, if not earlier, and records indicate rates of 10–25 percent for silver and 20–35 percent for cereals. Among the Mesopotamians, Hittites, Phoenicians, and Egyptians, interest was legal and often fixed by the state. Among the
311:
a loan, are another form of interest, according to the
Mishnah, even if the loan is repaid when the gift is offered. It even goes so far as to forbid the loaning of things other than money since by the time the loan had to be repaid, the market value of the loaned thing could have risen, which effectively constituted interest; likewise, the exchange of labour between two individuals was forbidden by the Mishnah, if the work by one of the individuals would be more laborious than the other.
315:
the biblically prohibited forms of interest cannot be reclaimed legally. The
Mishnaic justification given for the latter view is that the biblical text invokes divine vengeance against usurers, and civil action cannot be launched against someone under the penalty of death; effectively this meant that rabbinical courts made judgements in cases of usury, but refused to enforce them by anything other than physical attacks against the lender's body.
334:
accidents. However, the
Mishnah argues that it would not be counted as usury if the supplier employed the shopkeeper to sell the product, even if the wage was merely nominal, such as a single dry fig; this mechanism to permit profit being gained by a lender, in a business transaction between lender and debtor, was formalised as the
342:, which worked in exactly the same way as the earlier Sumerian business partnership contract between lender and debtor. Like all contracts, there are sometimes disputes, and the parties may resort to secular courts, running the risk of the court imposing interest, or other conditions which are contrary to
237:, loans were usually given with interest attached, at the rate of 20% per annum; this interest rate is almost always the one stated in surviving Sumerian contract tablets, and was evidently still well known in first century Judaism, as it is the first interest rate to which the Babylonian Talmud refers.
310:
The
Mishnah forbids the drawing of interest and dividends from investments, arguing that people should instead buy land and draw income from it. The Mishnah also counts gifts, which aim to encourage the offering of loans, to be a form of interest, paid in advance; similarly, gifts given in thanks for
306:
If witnesses support a claim that it had been agreed to repay a debt by a certain date, but they are proved to be lying, and the correct repayment date to be a different date, according to the
Mishnah, the false witnesses must pay the amount accrued due to the difference in value of the thing between
208:
as the security. The garment in question was a large cloth square, which the poor used for sleeping within, and so the garment was needed to survive the cold nights; if it had been offered as security, this would have put at risk the very life of the debtor. The
Deuteronomic verse expresses a similar
333:
The
Mishnah forbids arrangements where a supplier gives a product to a shopkeeper to sell in return for a portion of the profit, since it views the supplier as effectively loaning the product to the shopkeeper, while ignoring the fact that the shopkeeper takes on the risk of theft, depreciation, and
314:
According to the
Mishnah, if a debtor has paid interest to his lender, it can be reclaimed if it is a form of interest explicitly prohibited by the biblical regulations, but not if it is prohibited only by the Mishnah itself; a dissenting view is, however, expressed by the Mishnah, stating that even
294:
The
Mishnah states that it is not permissible to withhold the whole of something such as a field, for which part of the selling price has already been paid, because any income arising from possession of the entity would effectively be interest on the outstanding amount. However, the Mishnah does
358:
Another significant loophole in the law was the biblical permission to charge interest on loans to non-Israelites, since this made it possible for an
Israelite to charge interest on a loan to another Israelite, by making the loan through a third party who was not an Israelite; interest could be
354:
There were also a number of methods of evading the anti-usury laws completely, identified in the Mishnah. One of the simplest methods was for a person to lend something to another and buy it back from them at a reduced price (the purchase, of course, is independent of the loan); the Mishnaic
240:
A more mutually profitable arrangement existed in Sumerian law, by which a lender and a debtor make contractual arrangements to become partners in a business venture, with the lender agreeing to invest in the venture, and the debtor agreeing to manage the venture; the
396:, it is only the return of the capital part of a bond that is enforceable: if it covers the interest separately, the interest part is not enforcible, and if it combines the interest and capital into a single sum, the whole bond is unenforceable. Similarly, the
384:
as being authoritative, expresses a different view on interest, stating that it is now allowable (when it was written) to lend on interest to non-Jews. This text also records an exemption from the additional rabbinic restrictions for charities, such as
197:. In Leviticus, loans themselves are encouraged, whether of money or food, emphasizing that they enable the poor to regain their independence. Like the other two places in the Bible, the charging of interest on the loan is forbidden.
355:
regulations do not prevent the lender from requiring the full value of the loaned thing to be returned and so allows the lender to make a profit from the difference between the reduced price and the actual worth of the loaned thing.
295:
permit the refusal to hand over something for which only partial payment has been received, if it had been sold on the terms that payment would be made by a certain date and that date has passed; in
556:
291:
regulation, it even regards any witnesses to usury contracts, as well as the scribe writing the contract for the parties, to be as culpable for usury as the lender and debtor themselves.
221:, and hence would be required for the manufacture of bread, a staple food among the poor; if the millstone had been offered as security, the debtor would have been at risk of starvation.
273:
to trying to mitigate the scriptural rules in this area. According to the Talmud, the debtor would be as guilty as the lender, since it interprets one of the biblical verbs referring to
253:, as the lender's financial share in the venture is effectively the return on the loan, and the debtor's financial share in the venture is effectively a wage. The
404:
lends something belonging to their ward, and has charged interest on it, the ward may keep the interest and is not obliged to return it. The
76:, however, declared that the acceptance of interest from non-Jews does not apply to Christians or Muslims, as their faith systems are also
948:
The prohibition that a Jew should not charge a Jew interest on a loan and the practicality of this prohibition in a modern world
359:
charged on the loan to the non-Israelite, who could then loan the money to the other Israelite at a similar rate of interest.
698:
389:
or poor-funds. Similarly, it allows the borrowing of money on terms involving interest repayments when a life is in danger.
972:
649:
953:
72:(Jewish law) that prescribes interest-free loans applies to loans made to other Jews, however not exclusively. Rabbi
380:, a 16th-century text that was published after the writings of Maimonides, and which is viewed by the majority of
229:
Most early religious systems in the ancient Near East, and the secular codes arising from them, did not forbid
992:
416:
so if the lender died before the interest was returned, the lender's heirs were allowed to keep the money.
487:
462:
727:
269:
carefully tries to prevent evasion of the scriptural injunction against usury, preferring to forbid
684:
663:
8:
619:
614:
77:
209:
concern for the security of the debtor's life, but rather than prohibiting a particular
694:
511:
254:
433:(seventh/last year of the Jewish agricultural cycle after which debts were forgiven)
950:, three answers by Rabbi Samuel Barth, Rabbi Richard Wolpoe, and Rabbi Laura Geller
381:
530:
977:
688:
96:
84:
73:
28:
987:
982:
932:
401:
376:
242:
194:
190:
186:
141:
refer to interest added to the amount that the borrower must repay. The words
966:
425:
408:
even states that the courts can compel the restoration of interest only by
300:
201:
24:
930:"An Interest in Interest: One man's quest to stamp out usury in Israel".
516:
296:
287:
213:
from becoming the security for a loan, it prohibits instead the use of a
947:
957:
714:
368:
257:
contains regulations attempting to govern the use of these contracts.
282:
250:
214:
409:
122:
88:
40:
32:
442:
412:
the lender until they are willing to return the amount, known as
343:
266:
149:, for the form of interest most familiar in modern times, became
68:
750:
430:
386:
160:
52:
48:
362:
436:
234:
230:
218:
182:
170:
59:
44:
670:, 2 Vols. (trans., Leiden 1965), i104-56.Cited in Johnson,
246:
165:
130:
63:
204:
existed, as Exodus expressly prohibits using a particular
185:
expresses regulations against the charging of interest in
36:
445:(a Jewish writ making loans ineligible for cancellation)
285:; due to the Talmud's figurative interpretation of the
55:
dwells on Ezekiel's condemnation of charging interest.
609:
607:
605:
603:
601:
599:
597:
159:) in modern Hebrew. The latter word is cognate to the
595:
593:
591:
589:
587:
585:
583:
581:
579:
577:
260:
439:("Jubilee" year at end of seven agricultural cycles)
954:Interest-Free Loans - The greatest form of charity
574:
303:was invented to take advantage of this exception.
964:
318:
129:refers to interest deducted in advance from the
936:. No. 65. April 4, 2012. pp. 42–43.
874:
872:
51:'s blood. (See Ezekiel 18:13 and 18:17.) The
683:
154:
116:
80:and therefore share a common ethical basis.
646:
363:In rabbinical literature of the Middle Ages
869:
677:
642:
640:
638:
647:Black, M.; Rowley, H. H., eds. (1962).
133:money given to the borrower; the words
23:has a long and complex history. In the
965:
39:, denouncing it as an abomination and
635:
224:
554:
16:Jewish law on financial transactions
245:thus has characteristics of both a
155:
117:
100:
13:
923:
261:In classical rabbinical literature
14:
1004:
941:
693:. HarperCollins. pp. 172–3.
217:. The millstone was used to make
557:"Interest-Free Loans in Judaism"
904:
888:
853:
832:
820:
808:
796:
780:
768:
756:
744:
732:
721:
707:
650:Peake's Commentary on the Bible
657:
653:(revised ed.). T. Nelson.
548:
523:
505:
480:
455:
1:
449:
21:loans and interest in Judaism
176:
47:as people who have shed the
7:
973:Jewish courts and civil law
668:An Ancient Economic History
419:
31:classifies the charging of
10:
1009:
66:without interest. But the
200:Evidently the concept of
121:), which refers to the
392:In the opinion of the
672:A History of the Jews
103:), literally meaning
62:and Talmud encourage
993:Economy and religion
664:Fritz M. Heichelheim
338:, literally meaning
195:Deuteronomy 23:20–21
690:History of the Jews
620:Jewish Encyclopedia
344:Halakhic principles
561:My Jewish Learning
555:Robinson, George.
340:exemption contract
322:and other evasions
225:Historical context
191:Leviticus 25:36–37
118:מרבית/תרבית
728:Deuteronomy 23:20
700:978-0-06-182809-6
687:(17 March 2009).
531:"Bava Metzia 61b"
512:Babylonian Talmud
400:argues that if a
255:Code of Hammurabi
1000:
937:
918:
908:
902:
892:
886:
876:
867:
857:
851:
836:
830:
824:
818:
812:
806:
800:
794:
784:
778:
772:
766:
760:
754:
748:
742:
736:
730:
725:
719:
711:
705:
704:
681:
675:
661:
655:
654:
644:
633:
632:
630:
628:
611:
572:
571:
569:
567:
552:
546:
545:
543:
541:
527:
521:
509:
503:
502:
500:
498:
484:
478:
477:
475:
473:
459:
382:Orthodox Judaism
158:
157:
120:
119:
102:
35:among the worst
1008:
1007:
1003:
1002:
1001:
999:
998:
997:
963:
962:
944:
929:
926:
924:Further reading
921:
909:
905:
893:
889:
877:
870:
858:
854:
837:
833:
825:
821:
813:
809:
801:
797:
785:
781:
773:
769:
761:
757:
749:
745:
737:
733:
726:
722:
712:
708:
701:
682:
678:
662:
658:
645:
636:
626:
624:
613:
612:
575:
565:
563:
553:
549:
539:
537:
529:
528:
524:
510:
506:
496:
494:
488:"Ezekiel 18:17"
486:
485:
481:
471:
469:
463:"Ezekiel 18:13"
461:
460:
456:
452:
422:
367:In the view of
365:
324:
307:the two dates.
283:causative voice
281:, to be in the
263:
227:
187:Exodus 22:24–26
179:
85:Biblical Hebrew
74:Isaac Abarbanel
29:Book of Ezekiel
19:The subject of
17:
12:
11:
5:
1006:
996:
995:
990:
985:
980:
975:
961:
960:
951:
943:
942:External links
940:
939:
938:
925:
922:
920:
919:
911:Shulchan Aruch
903:
899:Hoshen Mishpat
895:Shulchan Aruch
887:
879:Shulchan Aruch
868:
860:Shulchan Aruch
852:
831:
819:
807:
795:
787:Shulchan Aruch
779:
767:
755:
743:
731:
720:
706:
699:
676:
656:
634:
573:
547:
522:
504:
479:
453:
451:
448:
447:
446:
440:
434:
428:
421:
418:
406:Shulchan Aruch
398:Shulchan Aruch
394:Shulchan Aruch
377:Shulchan Aruch
364:
361:
352:
351:
350:Other evasions
331:
330:
323:
317:
262:
259:
226:
223:
178:
175:
41:metaphorically
15:
9:
6:
4:
3:
2:
1005:
994:
991:
989:
986:
984:
981:
979:
976:
974:
971:
970:
968:
959:
955:
952:
949:
946:
945:
935:
934:
928:
927:
916:
912:
907:
900:
896:
891:
884:
880:
875:
873:
865:
861:
856:
849:
845:
841:
840:Mishneh Torah
835:
828:
823:
816:
811:
804:
799:
793: : 161:2
792:
788:
783:
776:
771:
764:
759:
752:
747:
740:
735:
729:
724:
717:
716:
710:
702:
696:
692:
691:
686:
680:
673:
669:
665:
660:
652:
651:
643:
641:
639:
622:
621:
616:
610:
608:
606:
604:
602:
600:
598:
596:
594:
592:
590:
588:
586:
584:
582:
580:
578:
562:
558:
551:
536:
532:
526:
519:
518:
513:
508:
493:
489:
483:
468:
464:
458:
454:
444:
441:
438:
435:
432:
429:
427:
426:Money changer
424:
423:
417:
415:
411:
407:
403:
399:
395:
390:
388:
383:
379:
378:
372:
370:
360:
356:
349:
348:
347:
345:
341:
337:
329:
326:
325:
321:
316:
312:
308:
304:
302:
298:
292:
290:
289:
284:
280:
276:
272:
268:
258:
256:
252:
248:
244:
238:
236:
232:
222:
220:
216:
212:
207:
203:
202:secured loans
198:
196:
192:
188:
184:
174:
172:
168:
167:
162:
152:
148:
144:
140:
136:
132:
128:
124:
114:
110:
106:
98:
94:
90:
86:
81:
79:
75:
71:
70:
65:
64:lending money
61:
56:
54:
50:
46:
42:
38:
34:
30:
26:
22:
931:
914:
910:
906:
898:
894:
890:
882:
878:
863:
859:
855:
847:
843:
839:
838:Maimonides,
834:
826:
822:
814:
810:
802:
798:
790:
786:
782:
774:
770:
762:
758:
746:
738:
734:
723:
713:
709:
689:
685:Paul Johnson
679:
671:
667:
659:
648:
625:. Retrieved
618:
564:. Retrieved
560:
550:
538:. Retrieved
534:
525:
515:
507:
495:. Retrieved
491:
482:
470:. Retrieved
466:
457:
413:
405:
397:
393:
391:
375:
373:
366:
357:
353:
339:
335:
332:
327:
319:
313:
309:
305:
293:
286:
278:
274:
270:
264:
239:
228:
210:
205:
199:
180:
169:used in the
164:
150:
146:
142:
138:
134:
126:
112:
108:
104:
92:
82:
67:
57:
25:Hebrew Bible
20:
18:
917: : 161
915:Yoreh De'ah
885: : 160
883:Yoreh De'ah
866: : 159
864:Yoreh De'ah
827:Baba Metzia
815:Baba Metzia
803:Baba Metzia
791:Yoreh De'ah
775:Baba Metzia
763:Baba Metzia
739:Baba Metzia
540:28 December
517:Baba Metzia
514:, Tractate
497:28 December
472:28 December
297:English Law
288:lifnei iver
271:moral usury
125:'s profit.
43:portraying
967:Categories
958:chabad.org
901: : 52
715:Baba Batra
450:References
369:Maimonides
336:Heter Iska
328:Heter Iska
320:Heter Iska
87:terms for
627:2 January
566:2 January
277:, namely
235:Sumerians
215:millstone
177:In Tanakh
78:Abrahamic
420:See also
414:contempt
410:flogging
402:guardian
301:mortgage
279:tashshik
89:interest
49:borrower
33:interest
674:, p.172
615:"Usury"
535:Sefaria
520:p. 61b.
492:Sefaria
467:Sefaria
443:Prozbul
387:orphans
267:Mishnah
211:garment
206:garment
127:Neshekh
93:neshekh
69:halakha
45:usurers
978:Credit
848:Malweh
751:Makkot
697:
623:. 1906
431:Shmita
299:, the
249:and a
193:, and
161:Arabic
147:tarbit
143:marbit
139:tarbit
135:marbit
131:loaned
123:lender
113:tarbit
109:marbit
107:, and
105:a bite
97:Hebrew
53:Talmud
27:, the
988:Loans
983:Usury
956:, on
844:Tamid
437:Yovel
275:usury
251:trust
231:usury
219:flour
183:Torah
171:Quran
163:word
156:ריבית
151:ribit
60:Torah
695:ISBN
629:2018
568:2018
542:2023
499:2023
474:2023
374:The
265:The
247:loan
243:bond
181:The
166:riba
145:and
137:and
91:are
83:The
58:The
37:sins
933:Ami
850::15
846::,
829:71a
817:5:6
805:68b
777:61b
765:75a
753:1:1
741:63a
718:60a
111:or
101:נשך
969::
913:,
897:,
881:,
871:^
862:,
842:,
789:,
666:,
637:^
617:.
576:^
559:.
533:.
490:.
465:.
346:.
189:,
173:.
99::
703:.
631:.
570:.
544:.
501:.
476:.
153:(
115:(
95:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.