משנה: אֵי זֶהוּ נֶשֶׁךְ וְאֶי זֶהוּ תַרְבִּית. אֵי זֶהוּ נֶשֶׁךְ הַמַּלְוֶה סֶלַע בַּחֲמִשָּׁה דֵּינָרִין וְסָאתַיִם חִטִּים בְּשָׁלֹשׁ מִפְּנֵי שֶׁהוּא נוֹשֶׁךְ. וְאֶי זֶהוּ תַרְבִּית הַמַּרְבֶּה בַפֵּירוֹת. כֵּיצַד לָקַח הֵימֶינּוּ חִיטִּים בְּדֵינָר זָהָב הָכּוֹר. וְכֵן הַשַּׁעַר. עָֽמְדוּ חִיטִּים בִּשְׁלֹשִׁים דֵּינָרִין אָמַר לוֹ תֶּן לִי חִיטַּי שֶׁאֲנִי מוֹכְרָן וְלוֹקֵחַ אֲנִי בָּהֶן יַיִן אָמַר לוֹ הֲרֵי חִיטִּין עֲשׂוּיוֹת עָלַי בִּשְׁלֹשִׁים דֵּינָרִין וַהֲרֵי לָךְ אֶצְלִי יַיִן וְיַיִן אֵין לוֹ. הַמַּלְוֶה אֶת חֲבֵירוֹ לֹא יָדוּר בַּחֲצֵירוֹ חִנָּם וְלֹא יִשְׂכּוֹר מִמֶּנּוּ בְּפָחוּת מִפְּנֵי שֶׁהוּא רִבִּית. MISHNAH: What is biting¹Interest which is prohibited by biblical law (Leviticus.25.36">Lev. 25:36) must be biting, i. e. cost the debtor money, and increase, result in monetary gain for the lender. and what is increase²תַּרְבִּית “increase”, refers to rabbinic interest prohibitions in which the biting feature is missing. Transactions which are perfectly legitimate in general can become forbidden as rabbinic interest if enacted between borrower and lender. There are different shades of rabbinically prohibited interest. Transactions which result in gain for the lender for deferral of repayment of a debt are plain interest payments. Services the debtor renders to the creditor which carry no monetary value are אֲבַק רִבִּית “dust of interest”.? What is biting, lending a tetradrachma for five denars, two se’ah of wheat for three; because this bites. What is increase? Paying more for produce. How is this? One bought from another wheat for a gold denar the kor at the going rate³For later delivery.. Wheat appreciated to thirty denars. He told him, deliver my wheat, for I want to sell it and buy wine with the proceeds. The other said, let your wheat be given to me for thirty denars⁴So far, the transaction is perfectly legal. and you have wine with me⁵They fixed the amount of wine which was the monetary equivalent of a kor of wheat at the time of the second transaction., but he has no wine⁶Since at the time of delivery the seller might have to buy wine at a higher price, the quantity of wine delivered would contain a “premium paid to the buyer for waiting to receive delivery”. The latter is the definition of rabbinically forbidden interest. This prohibits all trades in futures (even to a farmer, who might have a bad harvest and be forced to buy grain in the open market to cover the quantities he contracted for at the start of the growing season.).
A creditor may not dwell on the debtor’s premises for free or rent it below the going rate, for this would be interest⁷רִבִּית is the common rabbinic expression for “interest”..

הלכה: אֵי זֶהוּ נֶשֶׁךְ כול׳. אָמַר רִבִּי יַנַּאי. זֶהוּ רִבִּית שֶׁיוֹצֵא בַדַּייָנִין. בָּעוּ קוֹמֵי רִבִּי יוֹחָנָן. רִבִּית מָהוּ שֶׁיֵּצֵא בַדַּייָנִין. אָמַר לוֹ. אִם מִזּוֹ אֵין אָנוּ מְנִיחִין לִגְדּוֹלֵי אֶרֶץ יִשְׂרָאֵל כְּלוּם. מּוֹדֵי רִבִּי יוֹחָנָן שֶׁאֵין שְׁטָר זוֹקֵק לַחֲבֵירוֹ. מוֹדֶה רִבִּי יוֹחָנָן שֶׁאִם הָיָה הַשְּׁטָר קַייָם דִּמְנַכִּין לֵיהּ. HALAKHAH: “What is biting,” etc. Rebbi Yannai said, this⁸The interest described as “biting” in the Mishnah, where the rate of interest is spelled out beforehand. In the Babli, 61b, this is the opinion of R. Eleazar. Everybody agrees that rabbinic interest, where the effective rate depends on market forces, is not recoverable in court. is interest which is taken away by the judges. They asked before Rebbi Joḥanan, can interest be taken away by the judges? He said, if it were so, nothing would be left for the great people of the Land of Israel⁹To return interest taken is a moral but not a legal duty; Babli 61b.. Rebbi Joḥanan agrees that no document obligates another¹⁰While a court will not force a creditor to return the interest he already received, it cannot accept documents subjecting the debtor to a fixed rate of interest. If several documents are submitted to the court in a dispute between two parties, and one claim, containing a stated interest rate, was already paid off, the interest paid thereon cannot be deducted from the capital in dispute in the document which was not yet liquidated.. Rebbi Joḥanan agrees that if the document exists one subtracts [the interest]¹¹If a document subjecting the debtor to a fixed rate of interest comes before the court, they have to delete the interest clause..

אֵי זֶהוּ תַרְבִּית. תַּנֵּי. יִשְׂרָאֵל שֶׁהִלְוָה בְרִיבִּית לְיִשְׂרָאֵל אֵינוֹ גוֹבֶה לֹא אֶת הַקֶּרֶן וְלֹא אֶת הָרִיבִּית. דִּבְרֵי רִבִּי מֵאִיר. וַחֲכָמִים אוֹמְרִים. גּוֹבֶה אֶת הַקֶּרֶן וְלֹא אֶת הָרִיבִּית. כְּתִיב אֶת כַּסְפְּךָ לֹא תִתֵּן לוֹ בְּנֶשֶׁךְ. אֵין לִי אֶלָּא נֶשֶׁךְ בַּכֶּסֶף וְרִיבִּית בָּאוֹכֶל. נֶשֶׁךְ בָּאוֹכֶל וְרִיבִּית בַּכֶּסֶף מְנַיִין. תַּלְמוּד לוֹמַר אַל תִּקַּח מֵאִתּוֹ נֶשֶׁךְ וְתַרְבִּית. הִקִּישׁ נֶשֶׁךְ לְתַרְבִּית וְתַרְבִּית לְנֶשֶׁךְ. מַה נֶשֶׁךְ כֶּסֶף אַף תַּרְבִּית כֶּסֶף. מַה תַרְבִּית אוֹכֶל אַף נֶשֶׁךְ אוֹכֶל. “What is increase?” It was stated¹²Babli 72a, Bava qamma 30b, Bava batra 94b; Gittin 4:4:7" href="/Jerusalem_Talmud_Gittin.4.4.7">Yerushalmi Giṭṭin 4:4 (Notes 129,130), Pesachim 2:2:2-17" href="/Jerusalem_Talmud_Pesachim.2.2.2-17">Pesaḥim 2:2 (29a l. 38).: A Jew who lent to another Jew with interest can collect neither principal¹³Not as a matter of biblical law but as a fine. For him, the court will refuse to look at a document containing a stated rate of interest which therefore becomes barred from any action needing the sanction of a court. nor interest, the words of Rebbi Meïr. But the Sages say, he may collect the capital but not the interest. ¹⁴Babli 60b. It is written: “Your money you shall not give him by biting¹⁵The reference includes the second half of Leviticus.25.36">Lev. 25:36, “and against increase do not give your food.”.” Not only money by biting and food by increase. From where increase in money and biting in food? The verse says, “do not take from him biting and increase,¹⁶Leviticus.25.35">Lev. 25:35, “and fear your God, I am the Eternal.” This establishes the prohibition of stated interest as a moral imperative, subject to the jurisdiction of Heaven, not the human court. The argument identifies תַּרְבִּית in Leviticus.25.35">v. 35 and מַרְבִּית in Leviticus.25.36">v. 36.” it brackets biting with increase and increase with biting. Since biting refers to money, increase also refers to money; since increase refers to food, biting also refers to food¹⁷In each case every instance of taking stated interest is two sins by one action..

לָקַח מִמֶּנּוּ חִטִּים. אָמַר רִבִּי בָּא בַּר כָּהֲנָא. הַשַּׁעַר שֶׁהוּא יָפֶה לָעוֹלָם. פָּחוּת מִיכֵּן װַי לִזְבוּנָא. יוֹתֵר מִיכֵּן װַי לִמְזַבְּנָהּ. “One bought wheat from another.” Rebbi Abba bar Cahana said, the rate which is valid for everybody¹⁸The going rate mentioned in the Mishnah is the rate at which the seller is ready to sell to any buyer. It is presumed that market forces are effective at all times.. Less than that, woe to the seller; more than that, woe to the buyer!

אָמַר לוֹ. תֶּן לִי חִיטַּיי שֶׁאֲנִי מוֹכְרָן. בְּמַה קָנָה. רַב נַחְמָן בַּר יַעֲקֹב סְבַר מֵימַר. חַייָב לְהַעֲמִיד (לַחֲבֵירוֹ) [לוֹ מִן הַדִּין. רִבִּי אַבָּהוּא בְשֵׁם רִבִּי יוֹחָנָן. קָנוּ לוֹ מָעוֹתָיו דְּבַר תּוֹרָה.] “He told him, deliver my wheat, for I want to sell it.” How did he acquire¹⁹Since the Mishnah forbids taking money for merchandise which is not yet in the seller’s hand, it must assume that the contract is binding; otherwise it could not be forbidden. E has here an extended quote from the Mishnah.? Rav Naḥman bar Jacob was of the opinion that he had to deliver (to the other person)²⁰Reading of the Leiden ms. and editio princeps. As stated in the previous note, this is a trivial inference. [by law. Rebbi Abbahu in the name of Rebbi Joḥanan: His money acquired for him by biblical law.]²¹Reading of E. The Mishnah here follows R. Yannai and R. Joḥanan (Chapter 4, Note 2) that by biblical standards paying money transfers both ownership and possession. The seller obligates himself by taking money or money’s worth. In Kiddushin 2:5:2" href="/Jerusalem_Talmud_Kiddushin.2.5.2">Qiddušin 2:6, Note 138, R. Ḥiyya bar Abba, successor of R. Joḥanan in Tiberias, disagrees in the name of R. Joḥanan.

הַמַּלְוֶה אֶת חֲבֵירוֹ. חַד בַּר נַשׁ אַשְׁאַל לְחַבְרֵיהּ דֵּינָרִין אַשְׁרוּנֵיהּ גַּו בֵּיתֵיהּ. אֲמַר לֵיהּ. הַב לִי אֲגַר בֵּיתִי. אֲמַר לֵיהּ. הַב לִי דֵּינָרַיי. אֲתַא עוֹבְדָא קוֹמֵי רִבִּי בָּא בַּר מִינָא. אֲמַר לֵיהּ. וְקַיֵּם לֵיהּ מַה דַהֲוָה חֲמֵי לְמִישְׁרֵי. “A creditor.” A person lent money to another, who let him live in his house, then said, give me the rent for my house. The first one said, give me my money²²The text is quoted by Ran Ketubot 13 (on Alfasi # 391; 63a in the Wilna edition of Alfasi). There, the creditor first asked for his money; the debtor responded by asking for rent.. The case came before Rebbi Abba bar Mina²³In Ran: Abba bar Zamina., who told him to give what was a reasonable rent.

תַּנֵּי. יֵשׁ דְּבָרִים שֶׁהֵן רִבִּית וּמוּתָּרִין. כֵּיצַד. לוֹקֵחַ אָדָם שְׁטָרוֹת חֲבֵירוֹ בְּפָחוּת וּמִלְװָתוֹ שֶׁלַּחֲבֵירוֹ בְּפָחוּת וְאֵינוֹ חוֹשֵׁשׁ מִשּׁוּם רִבִּית. וְיֵשׁ דְּבָרִים שֶׁאֵינָן רִבִּית וַאֲסוּרִין מִשּׁוּם הַעֲרָמַת רִבִּית. כֵּיצַד. קִיבֵּל הֵימֶינּוּ שָׂדֶה בְּי̇ כּוֹר חִיטִּין. אָמַר לוֹ. תֶּן לִי סֶלַע אֶחָד. אָמַר לוֹ אֵין לִי אֶלָּא כּוֹר אֶחָד חִיטִּין. טוֹל לָךְ. וְחָזַר וְלָקַח מִמֶּנּוּ בכ̇ד̇. אֵין זֶה רִבִּית אֲבָל אָסוּר מִשּׁוּם הַעֲרָמַת רִבִּית. אֲמַר לֵיהּ. לֵית אַתְּ צְרִיךְ וְהַב אֲגַר כֵּלִים אוֹ אֲגַר הַכַּתָּפִין אֲקולִי וְסַב דֵּינָרָךְ. It was stated²⁴Tosephta 5:3, Babli 62b.: “There are things which are interest but are permitted. How is that? A person may buy another’s promissory notes at a discount, or bills of debt at a discount, and need have no compunctions because of interest²⁵As a matter of principle, while interest, a “premium for waiting to receive money due”, is forbidden, discount, a premium for paying early, is unquestionably permitted. The securities are due sometime in the future; the lender needs money now. He sells his securities at a discount.. Other things are not interest but are forbidden because of circumventing interest. How is that? One received from another a field for ten kor of wheat²⁶This statement is both corrupt and incomplete (in both mss.). Most likely it refers to Bava Metzia 5:2:1" href="/Jerusalem_Talmud_Bava_Metzia.5.2.1">Mishnah 3: A farmer rents a field and is given the choice of either paying 10 in advance for the year or each month 1 (of whichever unit it may be.) Since in talmudic tradition rental fees are payable at the end of the rental period, the difference of 2 for the year is discount rather than interest; it is unquestionably permitted..… A person said to another, lend me a tetradrachma²⁷The continuation shows that one must read “mina”, 100 denars, for “tetradrachma”.. He answered, I only have a kor of wheat, take it. If he then turned around and bought it back for 24 it is not interest but forbidden because of circumventing interest.²⁸Since a mina equals 25 tetradrachmas, the lender makes 1 tetradrachma on the deal. The question arises, why is this not true interest?” He might have said to him, you do not have to do this and take your denar but then you have to pay for vessels and porters of the containers²⁹Since the borrower would have had expenses of a tetradrachma if he actually had sold the wheat on the market, the lender can save him the expense by taking the wheat back while deducting the putative costs. But since for the lender it actually is a “premium for waiting,” it is prohibited as “circumventing interest”..

רִבִּי לָא אָמַר בְּנוֹתֵן לוֹ שְׂכַר רַגְלוֹ. רִבִּי זֵירָא אָמַר. נַעֲשֶׂה כְּמַשְׂכִּיר לוֹ דִּירָה בְיוֹקֶר. Rebbi La said, he pays him the wages of his foot; Rebbi Ze‘ira said, he rents him the dwelling at an inflated price³⁰It seems that these statements refer to the following Mishnah 3, that it is permitted to rent a dwelling at a discount if the rental fee is paid for a year in advance. R. La holds that the discount is not a simple finance operation but represents real savings for the landlord who does not have to go every month to collect his rent. R. Ze‘ira holds that rental fees are not really determined by the market; every landlord has the choice for how much he wants to rent out his real estate. If there exists no market price, one cannot talk about over-or undercharging..