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A Matter of Interest: The Laws of Ribbit The Severity of the Prohibition

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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’memkarribbit 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:

 

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.