Ribbit in Corporations Being that the Issur Ribbit is only applicable Bein Yehudi l’Yehudi, dealing with large banks or public corporations is usually not a Ribbit problem. However, if a Jew is guaranteeing the loan, in many instances Halachah views his obligation as if the guarantor himself is the lender and would therefore be prohibited. There are a surprising number of … [Read more...]
The Avissar Family Ribbit Initiative RIBBIT: MATTERS OF INTEREST
Greeting as a form of Ribbit & more 1. ONE TIME PENALTIES If the lender issues an interest-free loan but stipulates that there will be a one-time late fee if the loan is not satisfied by a certain date, one would not be subject to the classical Biblical Ribbit prohibition. There is however a rabbinical prohibition. Such an arrangement would be classified as Ha’arama … [Read more...]
The Avissar Family Ribbit Initiative
1. DELAYED PAYMENT If a store sets a price on an item, they may not charge more for credit. This is known as Agar Natar (charging for credit, a form of Ribbit). Many times, stores run sales with a two tier pricing system: the cheaper price for those who pay cash, and the higher price for those who buy on credit. An interest-bearing financing plan for a customer who purchased … [Read more...]
OVERVIEW OF THE LAWS OF RIBBIT
The Torah commands us to lend money to a fellow Jew in need. Since all Jews are brothers, we are commanded to extend this loan without charging interest. Charging interest on a loan may violate numerous Biblical and rabbinical prohibitions. All parties involved in the loan/transaction can also be in violation of the above transgression. Hence the borrower also transgresses the … [Read more...]
A Matter of Interest: The Laws of Ribbit The Severity of the Prohibition
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 … [Read more...]