Question:
What is the halacha regarding lending someone in reply to aloan as a commodity?
Answer:
A person asks for a loan of $100 and the lender isn’t interested. The lender counter offers him to lend him $100 worth of a commodity and he can sell it for that value and use the money. Then the borrower takes the commodity worth a $100 and offers the lender to buy back the commodity for $90. If the buyer accepts that deal it is forbidden since in effect the borrower borrowed $90 and is obligated to return $100 which is interest.
This is considered legal subterfuge and even though it is forbidden to arrange, if it is already arranged, according to Sephardim the borrower can repay the full loan. However, according to Ashkenazim the the borrower shouldn’t repay the full value of the loan since this is considered rabbinic interest.
If beisween the time of the loan and the time of the resale of the commodity to the lender the price of the commodity dropped to $90 then it is permitted to sell the commodity back to the lender.
If the borrower never took the commodity but everything was transacted orally it is considered rabbinic interest in all circumstances.
If the borrower stipulated with the lender that they would go through with this entire series of transactions it is certainly interest. The Rama implies it is biblical interest while the Bach cited by Shach 163:11 explains that it is only rabbinic interest.
There is a dispute if it is permitted if the borrower only sells the commodity back to the lender at another time.
The Taz 163:7 is lenient since it doesn’t appear like interest but two separate transactions. The Nekudat Hakesef 163:3 forbids and Chelkas Binyamin 164:27 additionally cites the Graz, Tiferet Lmoshe, and Avnei Nezer who are strict, unlike the Chachmas Adam who is lenient.
A person borrowed money and as a collateral gave the lender a field. Generally, the lender may not make use of that field without certain conditions. The lender then rents out the field to the borrower for a fixed rate. That is considered legal subterfuge to charge a borrower interest on his loan and is forbidden.
If the entire series of transactions were stipulated from the beginning it is certainly forbidden.
If the field as a collateral was used by the lender and for that use a deduction was made to the loan for each year until the entire loan would be paid off, then if there is someone else in between the borrower and lender it is permitted. That is, if the lender rents out the field to someone else and that person then lends it to the borrower it is permitted.
It is permitted to sell a field to someone and then rent it from them.
The following are types of Transactions That Might Involve Interest
-It is forbidden to charge interest for a rental.
If someone got money not as a loan or as a deposit to safe guard but because of theft or as a debt of rental or wages, even though one can’t charge interest, if the one who is obligated to pay wants to pay more he can do so. However, some forbid in all cases. The Brit Yehuda 2:17, He explains that that oppinion holds that there is no prohibition of interest when it was a case of a rental or wage. The Beis Yosef end of 160 rejects this opinion as does the Shach. However, the Bach 161 accepts it as a legitimate opinion. The Maharashdam YD 222 cited by Brit Yehuda claims that there’s only a dispute if the one who deserves the rent or wage charges the interest but if the one who has the money decides to give extra that is permitted. The Masat Binyamin and the Brit Yehuda follows that opinion. |