Social Interaction After a Loan: Halachic Guidelines to Avoid Ribis

I just borrowed $200,000 from a close friend of mine, My question is, am I still allowed to invite him over to my house for a meal, or would that be considered ribis? Please advise, as I don’t want him to feel that I’m distancing myself in any way, yet I want to be careful to observe the halachos of ribis properly.

Thank you for your question.

The Answer:

If that is what you generally do, you may continue to invite him. However, you should not add anything that you would not have done if he had not lent you the money.

The answer explained:

The Shulchan Aruch in Hilchos Ribis, Yoreh De’ah, Siman 67, writes as follows:

שולחן ערוך יורה דעה הלכות ריבית סימן קס סעיף ז

אם נהנה ממנו מדעתו, מותר בדבר שהיה עושה לו אף אם לא הלווהו.

However, the lender may benefit from the borrower—with his consent—in a manner that he would have done for him even if he had not lent him the money.

HaGaon HaRav Amrom Fried, shlit”a, writes that there are four conditions that must be met for it to be permitted.

1. 1. Even in a case where the borrower is benefiting the lender in a way he would have anyway have done, nevertheless, he should not do so with the intention that it is because of the loan that he received.

2. 2. One may not give a big gift that one doesn’t normally give to a friend since it would appear to others as though you are giving it in exchange for the loan—even if, in your mind, you would have given it to the lender regardless, it is still forbidden. For example, one may not give their holiday house to the lender for a few days, even if they are close friends, since it would appear to others that this is in exchange for the loan. (However, if it is obvious that it is unrelated to the loan—such as a son honoring his father with Sandeka’ut —it is permitted, since it is obvious that it is not because of the loan)
This is based on the Shach, Se’if Katan 10.

3. 3. Even in a case where it is a gift that you would have given to the lender anyway, one may not give it at the time of repaying the debt, since it will appear as though your intention is to give the gift in return for the loan you received.

4. 4. The lender may not take something from the borrower, assuming that, since they are friends, he won’t mind. This is because it would appear to others that the reason he is taking it is due to the loan he gave him.

Based on the above, I would like to share with you a few cases that have been asked in the Beis Hora’ah:

Mishloach Manot:

May the borrower give Mishloach Manot to the lender on Purim? This would depend: if he gives it to him every year, then he may continue to do so even after receiving a loan from him. However, if he did not previously give him Mishloach Manot, he may not begin doing so this year.

Wedding Presents:

The borrower may give a wedding or bar mitzvah present to the lender, and there is no prohibition of ribis. However, he should not mention the loan when giving the gift, and similarly, he should not even think in his mind that he is giving it because of the loan he received.

Helping a Neighbor Build a Sukkah:

Someone asked if he may help the borrower build a sukkah on Erev Sukkot. The answer is: if that is something he used to do for him, he may continue to do so. However, if it is difficult for him to help and he is only doing so because of the loan he received, then it would be forbidden.

Giving the Borrower a Discount:

If the borrower owns a shop and gives everyone a certain discount, he may do the same for the lender. However, he may not give a discount specifically to the lender alone, as that would constitute ribis.

Wising you much hatslacha.

Shulchan Aruch, Yoreh De’ah, Siman 160, Se’if 7

Shach, Se’if Katan 10