Lending Money With Interest
I listened to a rabbi on YouTube who sad that usury is wrong. I was surprised to hear that, and it is because of the stereotypical Jewish banker. So I tried to research this, and I came across these Torah verses that forbid Usury: Psalms 15:5, Ezekiel 18:8–9, and Leviticus 25:35–37.
However, I came across this from the Yoreh De’ah (a compilation of Jewish laws or halakha – I think is in the Talmud): “It is forbidden to participate in any way in an interest-bearing loan made by one Jew to another (160:1-3), but it is permitted to lend money to a non-Jew at interest (159:1-3).”
My question is: Which takes precedent, the Torah or that halakha in the Talmud? If the latter, then it is OK for Jews to lend money to Gentiles with interest (low to payday loan high) even though the written Torah makes it seem like it’s bad to do anyone – both Jew and Gentile?
Answers
As you write, the prohibition of charging interest appears in Leviticus 25:38 – “You shall not lend with interest to your brother; interest of money, interest of food, interest of anything that is lent upon interest. You may lend with interest to a stranger, but to your brother you shall not lend with interest; so that the Lord your God will bless you in all that you do, in the land that you will possess… I am the Lord your God Who took you out of the land of Egypt.”
The verse in the Torah stresses that it is forbidden to lend money with interest only to a brother. To lend to anyone else means that interest can be charged. Our Sages in the Talmud understand the reference to “brother” in the verse as not being just a biological brother, but that it is refers to all Jews. Therefore, the Code of Jewish Law states that it is forbidden to charge interest to a fellow Jew for any loan that he may take. It is, however, permitted to charge interest to anyone who is not considered to be a “brother.”
Historically, Jews were very often involved in banking and money-lending because they were restricted by their Christian “hosts” from most other sources of livelihood.
Best wishes from the AskTheRabbi.org Team