Are Jews allowed to practice usury?

Some interpretations of Jewish law allow for the charging of interest on loans to non-Jews, as long as the rates are reasonable and do not violate ethical principles.

Usury, the practice of charging excessive or unreasonable interest on loans, has long been a subject of debate and controversy within religious and ethical teachings.

In the Jewish faith, the issue of usury is addressed in the Torah and other sacred texts, with specific guidelines and restrictions imposed on lending practices. While the stance on usury may vary among different Jewish denominations and interpretations, there are certain principles and teachings that provide insight into the Jewish perspective on this contentious issue.

The Torah, the central religious text of Judaism, contains several passages that address the issue of usury and interest-bearing loans. In Exodus 22:25, it is written, "If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him." This verse reflects the principle of compassion and social justice that underlies Jewish teachings on lending and financial transactions. The Torah emphasizes the importance of helping those in need and prohibits exploiting the vulnerable through usurious practices.

In addition to the Torah, the Talmud, a collection of rabbinic teachings and commentaries on Jewish law, also addresses the issue of usury. The Talmudic sages, known as the Rabbis, further elaborated on the prohibition of usury and established guidelines for ethical lending practices. While the general consensus among Jewish scholars is that charging interest to fellow Jews is forbidden, there are interpretations that allow for limited and regulated forms of interest under certain circumstances.

One concept that is central to Jewish teachings on lending is the idea of "ribbit," which refers to excessive or exploitative interest charges. The prohibition against ribbit is based on the principle of fairness and mutual respect in financial transactions. Jewish law prohibits charging interest on loans to fellow Jews, as it is seen as taking advantage of the borrower’s financial vulnerability and exploiting their need for assistance.

However, the issue of usury becomes more complex when considering loans extended to non-Jews. Some interpretations of Jewish law allow for the charging of interest on loans to non-Jews, as long as the rates are reasonable and do not violate ethical principles. This distinction highlights the nuanced approach that Jewish teachings take towards usury, taking into account the context and circumstances of each lending situation.

Subscribe to Bible Analysis

Sign up now to get access to the library of members-only issues.
Jamie Larson
Subscribe