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By HaRav David Grossman, Rosh Bet HaVaad
WHAT IS RIBBIT?
The Torah prohibits borrowers and lenders from entering into a loan transaction with a fellow Jew that includes an interest obligation (VaYikra 25:35-36, Devarim 23:20, Shemot 22:24). Even if the loan was already illicitly made, it is further prohibited to follow through and actually pay or receive ribbit. In many cases, even if such payment was made, it must be returned to the borrower.
10 Forms of Ribbit
There are various types of ribbit. It is important to be able to identify exactly which form of ribbis is involved in each specific transaction, as the laws – as well as the recourse – may vary accordingly.
The various forms of ribbis include:
· ribbit ketzutza – fixed interest; forbidden mid’Ooraita (from the Torah)
· ribbit she’eina ketzutza – unstipulated ribbis; forbidden mid’Rabbanan (rabbinic)
· tzad ehad b’ribbit – one-sided ribbit; cases where the existence of ribbit is subject to a specific occurrence
· ribbit mukdemet – paid in advance of a loan
· ribbit me’uheret – paid after the loan was made, but not required under its terms
· avak ribbit – “dust” of ribbit; cases prohibited mid’Rabbanan
· ribbit devarim – a verbal gift like effusive thanks, a blessing, or an honor
· ribbit derech mekah u’memkar – ribbit derived from a sale
· ha’aramat ribbit – ribbit by trickery
· mehze k’ribbit – acts forbidden because they appear to be ribbit, though they aren’t
The Torah is replete with statements that communicate the extreme severity of the ribbit prohibition:
- A person involved in a ribbit transaction can transgress as many as six Torah prohibitions.
- One who lends or borrows with interest denounces the G-d that took the Jewish people out of Egypt (Bava Metzia 71a).
- One who borrows or lends with ribbit is cursed that his assets dwindle (ibid).
- Yehezkel (18:6-17) equates ribbit with the three cardinal sins and the Talmud (Bava Metzia 61b) equates it with murder.
- One who lends with ribbit will not rise at tehiyat hametim (Pirkei D’Ribbi Eliezer 33).
Story Line: In Passing
In 19th-century Posen, Poland, lived a man who had become wealthy by lending to needy Jews at interest. Upon his death, the hevra kadisha charged the family a princely sum for his burial. Incensed, the survivors complained to the Rav, Rabbi Akiva Eiger, who defended the surcharge: Most people procure a grave for short-term use, because they will vacate the premises at tehiyat hametim. But a malveh b’ribbit – one who lends money with interest – will be using the site forever, so a much higher price is warranted.