Interest on a Loan Within the Family
Question
Hello, Rabbi,
I wanted to ask about interest between close people, such as when one lends money to parents, siblings, or even friends, and receives it back in a larger bill, for example a loan of one hundred or two hundred. Is this considered ribit?
I wanted to ask about interest between close people, such as when one lends money to parents, siblings, or even friends, and receives it back in a larger bill, for example a loan of one hundred or two hundred. Is this considered ribit?
Answer
Shalom and blessings
The prohibition of ribit applies to every loan, even between close family members.
[There is a certain leniency regarding a loan between close people, when one borrows an item and returns an item that is slightly larger than the one borrowed. This is because, among close people, it is customary not to be particular about such a matter. However, this does not apply to a monetary loan. Nor does it apply to loans of items where there are significant differences between them].
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