The Torah prohibits charging interest and paying interest to fellow Jews. The Torah allows charging interest and paying interest to non-Jews.
A person who lends money to a Jew and charges interest, has transgressed six Torah commandments and - if he doesn't repent - will not awaken at Techiyat Hameitim - when the dead will be revived at the End of Days.
The person who borrows the money transgresses three Torah commandments.
The scribe, witnesses, co-signer and middle-man all transgress one Torah commandment.
In most cases, a person who received interest from a loan needs to return it. Even if the borrower - on his own accord - returns more than he borrowed or adds a gift, it is considered interest on the loan and the lender is not allowed to accept it.
Even non-monetary gain from a debtor is forbidden. For example:
- The creditor may not ask the debtor to inform him when somebody has arrived, unless he used to do this before giving him the loan.
- The debtor may not go out of his way to greet the creditor, unless he always used to do so.
- The debtor may not patronize the creditor's business, unless he used to do so before getting the loan.
- When doing a business deal with a fellow Jew, one needs to use a Heter Iska - the subject of a future posting.
Source: Kitzur Shulchan Aruch 65:1, 2, 4, 5, 9, 10
- Danny
Wednesday, 13 Sivan 5773
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