Jewish law (halakhah) prohibits Jews from charging or paying interest (ribbit) on loans to other Jews, based on biblical law. However, interest-bearing loans are permitted with non-Jews. To navigate modern banking, a legal contract called a heter iska is often used, restructuring loans as business partnerships to comply with these rules.
Be in no doubt: Jewish law does not permit money-lending at interest.
A set of Islamic principles—based on the goal of providing economic justice for all—prohibits Muslims from paying or receiving interest during financial transactions. Some Jewish and Christian groups face a similar prohibition.
The Torah expresses regulations against the charging of interest in Exodus 22:24–26, Leviticus 25:36–37, and Deuteronomy 23:20–21. In Leviticus, loans themselves are encouraged, whether of money or food, emphasizing that they enable the poor to regain their independence.
At that time, money lending and interest was considered a form of gambling, so the Muslims and Christians were banned from doing it while the Jews were only discouraged from doing it. This made it a safer job for Jews to do that didn't risk upsetting people from the dominant ingroup.
In addition to being an anagram of the Hebrew word “ribbit,” the word berit is significant. The title translates as “The Covenant of Brothers,” conveying that the ban against interest constitutes a unique bonding mechanism for the Jewish people. This explains why even reasonable rates of interest are forbidden.
Islamic rules forbid earning interest from savings and charging interest on loans and mortgages. Under Islam, being in debt is not encouraged. In the UK, Islamic banking is typically only offered by Islamic banks, but accounts are available to everyone, even those who don't practise Islam.
"At the end of every seven-year period you shall have a relaxation of debts, which shall be observed as follows. Every creditor shall relax his claim on what he has loaned his neighbor; he must not press his neighbor, his kinsman, because a relaxation in honor of the Holy One has been proclaimed." (Deuteronomy 15)
Deuteronomy 23:19 New American Standard Bible - NASB 1995 (NASB1995) “You shall not charge interest to your countrymen: interest on money, food, or anything that may be loaned at interest.
In Judaism one is not only permitted but required to perform most sins, if necessary in order to save human life. This principle is called pikuach nefesh. The only exceptions are the three exceptional sins (murder, idolatry, and sexual misconduct), which one must die rather than commit.
But when it comes to helping your fellow Jew, it's a whole different story. The Torah teaches us to treat each other like family. That means no charging interest on loans between brothers and sisters! It's not just a business principle, it's about fostering love, trust, and responsibility within the community.
Understanding Riba
Riba is a concept in Islamic banking that refers to charged interest. It has also been referred to as usury, or the charging of unreasonably high interest rates. Riba is prohibited under Sharia law to ensure equity in commerce. Islam aims to encourage charity and helping others through kindness.
All three Abrahamic religions – Christianity, Judaism, and Islam – have teachings that prohibit the charging of interest on loans. This prohibition is based on the belief that charging interest is exploitative and goes against the principle of treating others with fairness and compassion.
The Talmud (Bava Metzia 42a) even advises diversification as a risk mitigation strategy: “A person should always divide his money into three parts: one third in land, one third in merchandise, and one third in reserve.” While modern investment vehicles have evolved, the core principle of spreading risk remains deeply ...
Hebrew Free Loan of San Diego offers a variety of interest-free, cost free loan programs to address the needs in the community, whether it be personal needs, help with a life cycle event, educational pursuits, a hand up while looking for a job, or needing help with a small business.
In Luke 6:34-35a, Jesus tells a crowd of people, “And if you lend to those from whom you expect repayment, what credit is that to you? Even sinners lend to sinners, expecting to be repaid in full. But love your enemies, do good to them, and lend to them without expecting to get anything back.”
Luke 6:34-35
Here we have Jesus saying, “lend, expecting noth- ing in return,” again to the crowds as well as to Jesus' disciples (Lk 17, 7:1). Garland (2011) suggests that Jesus says this because his teaching reaffirms the essence of the Old Testament prohibition against interest.
For the most part, Christians have concluded that interest is not inherently prohibited in modern societies, but that lending practices— including interest rates and collateral—must not take advantage of vulnerable people or make people destitute.
Hebrew Free Loan societies (such a society is also known as a Gemach) are based on the biblical injunction that Jews may not charge interest to other Jews in need, found in Exodus 22:25: "If you lend money to My people, to the poor among you, do not act towards them as a creditor; exact no interest from them."
Special debts like child support, alimony and student loans, will not be eliminated when filing for bankruptcy. Not all debts are treated the same. The law takes some debts very seriously and these cannot be wiped out by filing for bankruptcy.
The Religious Foundation
Jewish law (halacha) strictly prohibits charging interest between Jewish parties, based on biblical prohibitions. However, in today's financial world, interest is fundamental to lending operations.
God's Technicians: Religious Jurists and the Usury Ban in Judaism, Christianity, and Islam.
Requirements vary based on the loan type — and some borrowers may not be eligible. In some cases, no-interest loans have introductory offers that provide 0% APR for a set period. You may find this type of financing on auto loans from a dealer, but you typically need a good credit score to qualify.