The Avissar Family Ribbit Initiative 1.   WHO IS CONSIDERED A BORROWER? Any time a Jew lends money to another Jew the laws of Ribbit will apply. The title “borrower” in Halacha is applied anytime a Jew borrows money or consumable commodities from another Jew. Furthermore, one who purchases merchandise on credit is also considered a borrower, and the seller – a lender. … [Read more...]

Avissar Family Ribbit Initiative   INTRODUCTION People will encounter many common Ribbit problems without ever realizing that they exist. Some may be questions of Ribbit D'Oraita which must be returned. Other times it can be D'Rabannan which one should be Mahmir (stringent) to return. In all cases they must be avoided. Hachamim are very stringent about any form of … [Read more...]

Reuven allows Shimon to make a purchase on his credit card. Shimon will pay the issuing bank directly, including the interest charged by the bank, several months hence. Both men reckon that there is no Ribbit problem, because the bank isn’t owned by Jews. But Halacha views this case differently. The bank has never heard of Shimon; the responsible party on the account is … [Read more...]

  Avissar Family Ribbis Initiative Many common financial transactions involve Ribbit, so pitfalls abound for the unaware. Following are some common business activities that can, depending on the circumstances, constitute ribbit. • COSIGNING: Cosigning on a loan or car lease, even where the lender isn’t Jewish or is a publicly-traded financial institution. • CREDIT … [Read more...]

Who is subject to Ribbit? All participants in the transaction violate issurim: lender, borrower, witness, guarantor, and scribe or attorney. Banks and publicly traded companies As ribbit is only prohibited where both parties are Jewish, one may borrow at interest from a publicly-traded bank or financial institution, where the religion of principals of the company is not … [Read more...]