Interest with Non-Jews: Difference between revisions

The Torah recognizes the time value of money and therefore permits charging a non-Jew interest for a loan. However, with respect to a fellow Jew the Torah demands that a person do a kindness and lend them for free.<ref>Ramban Devarim 23:21 writes that even though it is forbidden to steal from a non-Jew it is permitted to charge them interest for a loan since it is given willingly. Nonetheless, with one's fellow Jew it is forbidden to charge interest since that it is a kindness that the Torah demands us to do. This sentiment is echoed in Sefer Hachinuch (Mitzvah 573). See Ralbag (Toaliyot Vayikra 25:35) who writes that the Torah forbids taking interest because it wants us to stay away from the negative drive of lusting money. In trying to amass wealth a person is tempted to use any ruse possible and to prevent this the Torah forbids a person from taking interest.</ref> Therefore, the Torah<ref>Vayikra 25:36-37</ref> forbids a Jew from taking or paying interest to another Jew, but it is permitted to take interest or pay interest to a non-Jew.