Chapter 65 – Interest on Loans

65.1) Do not be guilty of usury.

65.2) If you err in calculating interest, return the excess.

65.3) Do not charge interest on an interest free loan even when the debtor is late in paying it back.

65.4) Do not accept extra interest even if it is offered.

65.5) Do not accept extra interest as a gift.

65.6) Do not give interest in advance of a loan or subsequent to one.

65.7) If a former lender borrows money from a former debtor, the loan should be the same amount or less so as not to look like interest on the original loan.

65.8) A lender must not derive benefit from the money he lends to another.

65.9) A lender and borrower should maintain the level of relationship after the loan as before.

65.10) A lender must not derive any work benefit from the debtor unless he worked for him previous to the loan.

65.11) Do not lend a measure of grain to another with the expectation of receiving the same in kind.

65.12) If a lender rents to a debtor, the rental money should be counted toward the debt.

65.13 ) Do not sell an article with a fixed price at a greater price to cover a credit purchase.

65.14) One may sell a note to another for the same value he purchased it.

65.15) Taking interest may be accomplished in certain ways. (See source for details, or consult a rabbi.)

65.16) Do not pay for produce or any other commodity for future delivery.

65.17) You may purchase produce at a fixed price for future delivery.

65.18) If a person buys a product at one price to go sell at a higher price with a promise to bring the money back to the seller, it is okay so long as the seller takes the financial risk and not the customer.

65.19) If you are loaned money at the market to purchase something and transport it home and give the lender more than you borrowed after you ) return home, that is okay.

65.20) You may solicit another to buy you a particular good at another location for a lower price if the purchaser is assuming the risk of the goods in transit.

65.21) Under certain circumstances, you may increase the rent of realty. See the source for details.

65.22) You may not decrease the wages for a worker in the same way you may increase a rental property rate.

65.23) A bridegroom’s dowry may be increased in consideration of deferred payment.

65.24) Interest between a Jew and a non-Jew is permitted.

65.25) If a loan is at the risk of the borrower, an intermediary may work out a deal between a non-Jew and a Jew.

65.26) A loan where the intermediary is not held responsible for the loan is permitted.

65.27) If a non-Jew and a Jew do business, and another Jew gets involved in the transaction, the first Jew may not collect the compounded interest from the loan.

65.28) A Jew may deposit money with a non-Jew so long as the non-Jew takes the responsibility for any losses.

65.29) You need to consult a rabbi if you and a partner wish to borrow money from a non-Jew.

65.30) Do not borrow money on interest or lend money to an apostate.