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Save "Ki Tetze - quick primer on loans
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Ki Tetze - quick primer on loans
(כ) לֹא־תַשִּׁ֣יךְ לְאָחִ֔יךָ נֶ֥שֶׁךְ כֶּ֖סֶף נֶ֣שֶׁךְ אֹ֑כֶל נֶ֕שֶׁךְ כׇּל־דָּבָ֖ר אֲשֶׁ֥ר יִשָּֽׁךְ׃ (כא) לַנׇּכְרִ֣י תַשִּׁ֔יךְ וּלְאָחִ֖יךָ לֹ֣א תַשִּׁ֑יךְ לְמַ֨עַן יְבָרֶכְךָ֜ יְהֹוָ֣ה אֱלֹהֶ֗יךָ בְּכֹל֙ מִשְׁלַ֣ח יָדֶ֔ךָ עַל־הָאָ֕רֶץ אֲשֶׁר־אַתָּ֥ה בָא־שָׁ֖מָּה לְרִשְׁתָּֽהּ׃ {ס}
(20) You shall not deduct interest from loans to your countrymen, whether in money or food or anything else that can be deducted as interest; (21) but you may deduct interest from loans to foreigners. Do not deduct interest from loans to your countrymen, so that the LORD your God may bless you in all your undertakings in the land that you are about to enter and possess.
(י) כִּֽי־תַשֶּׁ֥ה בְרֵֽעֲךָ֖ מַשַּׁ֣את מְא֑וּמָה לֹא־תָבֹ֥א אֶל־בֵּית֖וֹ לַעֲבֹ֥ט עֲבֹטֽוֹ׃ (יא) בַּח֖וּץ תַּעֲמֹ֑ד וְהָאִ֗ישׁ אֲשֶׁ֤ר אַתָּה֙ נֹשֶׁ֣ה ב֔וֹ יוֹצִ֥יא אֵלֶ֛יךָ אֶֽת־הַעֲב֖וֹט הַחֽוּצָה׃ (יב) וְאִם־אִ֥ישׁ עָנִ֖י ה֑וּא לֹ֥א תִשְׁכַּ֖ב בַּעֲבֹטֽוֹ׃ (יג) הָשֵׁב֩ תָּשִׁ֨יב ל֤וֹ אֶֽת־הַעֲבוֹט֙ כְּב֣וֹא הַשֶּׁ֔מֶשׁ וְשָׁכַ֥ב בְּשַׂלְמָת֖וֹ וּבֵֽרְכֶ֑ךָּ וּלְךָ֙ תִּהְיֶ֣ה צְדָקָ֔ה לִפְנֵ֖י יְהֹוָ֥ה אֱלֹהֶֽיךָ׃ {ס}
(10) When you make a loan of any sort to your countryman, you must not enter his house to seize his pledge. (11) You must remain outside, while the man to whom you made the loan brings the pledge out to you. (12) If he is a needy man, you shall not go to sleep in his pledge; (13) you must return the pledge to him at sundown, that he may sleep in his cloth and bless you; and it will be to your merit before the LORD your God.

~ What are the limits of loaning with interest, according to our portion? Why?

~ What types of loans is the text worried about?

~ Look in general in our reading for the treatment of those who owe something to someone else. What are the limitations set on the behavior of the creditor? Why?

(כא) כׇּל־אַלְמָנָ֥ה וְיָת֖וֹם לֹ֥א תְעַנּֽוּן׃ (כב) אִם־עַנֵּ֥ה תְעַנֶּ֖ה אֹת֑וֹ כִּ֣י אִם־צָעֹ֤ק יִצְעַק֙ אֵלַ֔י שָׁמֹ֥עַ אֶשְׁמַ֖ע צַעֲקָתֽוֹ׃ (כג) וְחָרָ֣ה אַפִּ֔י וְהָרַגְתִּ֥י אֶתְכֶ֖ם בֶּחָ֑רֶב וְהָי֤וּ נְשֵׁיכֶם֙ אַלְמָנ֔וֹת וּבְנֵיכֶ֖ם יְתֹמִֽים׃ {פ}
(כד) אִם־כֶּ֣סֶף ׀ תַּלְוֶ֣ה אֶת־עַמִּ֗י אֶת־הֶֽעָנִי֙ עִמָּ֔ךְ לֹא־תִהְיֶ֥ה ל֖וֹ כְּנֹשֶׁ֑ה לֹֽא־תְשִׂימ֥וּן עָלָ֖יו נֶֽשֶׁךְ׃ (כה) אִם־חָבֹ֥ל תַּחְבֹּ֖ל שַׂלְמַ֣ת רֵעֶ֑ךָ עַד־בֹּ֥א הַשֶּׁ֖מֶשׁ תְּשִׁיבֶ֥נּוּ לֽוֹ׃ (כו) כִּ֣י הִ֤וא כְסוּתֹה֙ לְבַדָּ֔הּ הִ֥וא שִׂמְלָת֖וֹ לְעֹר֑וֹ בַּמֶּ֣ה יִשְׁכָּ֔ב וְהָיָה֙ כִּֽי־יִצְעַ֣ק אֵלַ֔י וְשָׁמַעְתִּ֖י כִּֽי־חַנּ֥וּן אָֽנִי׃ {ס}
(21) You shall not ill-treat any widow or orphan. (22) If you do mistreat them, I will heed their outcry as soon as they cry out to Me, (23) and My anger shall blaze forth and I will put you to the sword, and your own wives shall become widows and your children orphans. (24) If you lend money to My people, to the poor among you, do not act toward them as a creditor; exact no interest from them. (25) If you take your neighbor’s garment in pledge, you must return it to him before the sun sets; (26) it is his only clothing, the sole covering for his skin. In what else shall he sleep? Therefore, if he cries out to Me, I will pay heed, for I am compassionate.
(לה) וְכִֽי־יָמ֣וּךְ אָחִ֔יךָ וּמָ֥טָה יָד֖וֹ עִמָּ֑ךְ וְהֶֽחֱזַ֣קְתָּ בּ֔וֹ גֵּ֧ר וְתוֹשָׁ֛ב וָחַ֖י עִמָּֽךְ׃ (לו) אַל־תִּקַּ֤ח מֵֽאִתּוֹ֙ נֶ֣שֶׁךְ וְתַרְבִּ֔ית וְיָרֵ֖אתָ מֵֽאֱלֹהֶ֑יךָ וְחֵ֥י אָחִ֖יךָ עִמָּֽךְ׃ (לז) אֶ֨ת־כַּסְפְּךָ֔ לֹֽא־תִתֵּ֥ן ל֖וֹ בְּנֶ֑שֶׁךְ וּבְמַרְבִּ֖ית לֹא־תִתֵּ֥ן אׇכְלֶֽךָ׃ (לח) אֲנִ֗י יְהֹוָה֙ אֱלֹ֣הֵיכֶ֔ם אֲשֶׁר־הוֹצֵ֥אתִי אֶתְכֶ֖ם מֵאֶ֣רֶץ מִצְרָ֑יִם לָתֵ֤ת לָכֶם֙ אֶת־אֶ֣רֶץ כְּנַ֔עַן לִהְי֥וֹת לָכֶ֖ם לֵאלֹהִֽים׃ {ס}
(35) If your kinsman, being in straits, comes under your authority, and you hold him as though a resident alien, let him live by your side: (36) do not exact from him advance or accrued interest, but fear your God. Let him live by your side as your kinsman. (37) Do not lend him your money at advance interest, or give him your food at accrued interest. (38) I the LORD am your God, who brought you out of the land of Egypt, to give you the land of Canaan, to be your God.

~ What is wrong with behaving "like a creditor"?

~ What is wrong with "interest"?

לא תהיה לו כנשה. לֹא תִתְבָּעֶנּוּ בְּחָזְקָה. אִם אַתָּה יוֹדֵעַ שֶׁאֵין לוֹ, אַל תְּהִי דּוֹמֶה עָלָיו כְּאִלּוּ הִלְוִיתוֹ אֶלָּא כְאִלּוּ לֹא הִלְוִיתוֹ, כְּלוֹמַר לֹא תַכְלִימֵהוּ:
לא תהיה לו כנשה THOU SHALT NOT BE UNTO HIM AS AN EXACTOR — you shall not demand the debt of him forcibly. The comparative כ of כנשה suggests thou shalt not be like a נשה: if you know that he has no money do not appear in your attitude towards him as though you had lent him, but as though you had not lent him — it means as much as, do not humble him.
נשך. רִבִּית, שֶׁהוּא כִנְשִׁיכַת נָחָשׁ שֶׁנוֹשֵׁךְ חַבּוּרָה קְטַנָּה בְּרַגְלוֹ וְאֵינוֹ מַרְגִּישׁ, וּפִתְאֹם הוּא מְבַטְבֵּט וְנוֹפֵחַ עַד קָדְקֳדוֹ, כָּךְ רִבִּית אֵינוֹ מַרְגִּישׁ וְאֵינוֹ נִכָּר עַד שֶׁהָרִבִּית עוֹלָה וּמְחַסְּרוֹ מָמוֹן הַרְבֵּה (תנחומא):
נשך is what is called in Rabbinical Hebrew רבית (from רבה to increase). It is called נשך “biting”, because it resembles the bite of a snake: it bites, inflicting a small wound in a person’s foot which he does not feel at first, but all at once it swells and distends the whole body up to the top of his head. So it is with interest: at first one does not feel the drain it makes on him and it remains unnoticed until the interest mounts up and suddenly makes the person lose a big fortune (Exodus Rabbah 31:6).
The root of all this: being kind and not being violent
מצות הלואה לעני - להלוות לעני כהשגת היד כפי מה שצריך לו למען הרחיב לו ולהקל מעליו אנחתו. וזאת המצוה (רמב''ם ספר המצוות עשה קצז) של הלואה היא יותר חזקה ומחיבת ממצות נתינת הצדקה, שמי שנתגלה ונודע דחקו בין בני אדם וגלה פניו לשאל מהם, אין דחקו ואפלתו כמי שעדין לא בא לאותה בושה וירא מהכנס בה, ואם יהיה לו מעט סעד של הלואה במה שירויח מעט אולי לא יצטרך לבוא לשאלה לעולם, וכשירחמנו האל ברוח ישלם נשיו ויחיה בנותר. ועל כן הזהירתנו תורתנו השלמה על זה לסעד המך בהלואה טרם יצטרך לבוא אל השאלה שנאמר (שמות כב כד) אם כסף תלוה את עמי, ואמרו זכרונם לברכה במכילתא (שם) כל אם ואם שבתורה רשות חוץ משלשה שהם חובה, וזה אחד מהם, ויכריחו הדבר מדכתיב במקום אחר דרך צואה (דברים טו ח) והעבט תעביטנו.
The commandment of lending to the poor person: To lend to the poor person - according to what is in reach of one's hand - in accordance with what [the poor person] needs, in order to give him space and to lighten his distress from upon him. And this commandment of lending is stronger and more obligatory than the commandment of giving charity. As the duress and the darkness of one who whose duress is [already] known and revealed among people and has [already] asked from them is not the same as the one who has not yet come to this embarrassment and is [still] afraid to enter into it. And if he would have a little assistance of a loan with which to make a little profit, maybe he will never need to come to asking. And [then] if God has mercy upon him with profit, he will pay his creditors, and he will live on the remainder (Sefer HaMitzvot LaRambam, Mitzvot Ase 197). And therefore, our perfect Torah warned us about this to assist the impoverished man with a loan before he needs to come to ask, as it is stated (Exodus 22:24), "If you lend money to My people." And they, may their memory be blessed, said in Mekhilta d'Rabbi Yishmael 22:24:1 [that] each and every, "if" in the Torah is optional except for three that are obligatory - and this is one of them. And they proved the matter from that which it is written in the way of a command in a different place, "you shall surely pledge" (Deuteronomy 15:8).
שרש המצוה, שרצה האל להיות ברואיו מלמדים ומרגלים במדת החסד והרחמים כי היא מדה משבחת, ומתוך הכשר גופם במדות הטובות יהיו ראוים לקבלת הטובה, כמו שאמרנו שחלות הטוב והברכה לעולם על הטוב לא בהפכו, ובהטיב השם יתברך לטובים ישלם חפצו שחפץ להטיב לעולם. ואם לאו, מצד שרש זה, הלא הוא ברוך הוא יספיק לעני די מחסורו זולתנו, אלא שהיה מחסדו ברוך הוא שנעשינו שלוחים לו לזכותנו. ועוד טעם אחר בדבר, שרצה האל ברוך הוא לפרנס העני על ידי בני אדם מגדל חטאו, כדי שיוכח במכאוב בשני פנים, בקבלת הבשת מאשר כגילו ובצמצום מזונו. וכענין זה שאמרנו כדי לזכותנו השיב חכם מחכמינו למין אחד ששאלו אם אלקים אוהב עניים, שהרי צוה עליהם, למה אינו מפרנסם וכו', כמו שבא (במסכת בבא בתרא י, א).
The root of the commandment is that God wanted His creations to be trained and habituated to the trait of kindness and of mercy, since it is a praiseworthy trait. And from the refinement of their bodies with good character traits, they will be fit to receive the good; as we have said that the good and blessing always descend upon the good, and not upon its opposite. And when God, may He be blessed, does good to the good, He fulfills His will, since He desires to do good to the world. And if it were not from the angle of this root, does He, blessed be He, not have enough for the lacking of the poor person without us? Rather, it was from His kindness, blessed be He, that He made us His messengers to give us merit. And there is also another reason in the matter - that God, blessed be He, wanted to support the poor person through [other] people because of the greatness of [that person's] sin, so that he be chastised by pain in two ways: by the contracting of embarrassment through those his age; and by the reduction of his food. And in the manner that we said [that it is] in order to give us merit did a sage from our Sages answer a certain heretic who asked him if God loves the poor - as He commanded [to help] them - why does He not provide for them, etc., as it appears in Tractate Bava Batra 10a.
שלא נתבע חוב מעני שאין לו במה לפרע - שנמנענו מלתבע החוב מן הלוה בעת שנדע שאינו יכול לפרע חובו לפי שאין לו, שנאמר (שמות כב כד) לא תהיה לו כנושה. ודע כי זאת המניעה תכלל גם כן שלא להלוות ברבית לישראל.
That we not demand the debt of a poor person that does not have with what to pay: That we have been prevented from demanding the debt of the borrower at the time that we know that he can not pay his debt, since he does not have [the money] - as it is stated (Exodus 22:24), "do not be to him as a creditor." And know that this preventing also includes not to lend with interest to [another Jew].
משרשי המצוה, לקבע לנו מדת החסד והחמלה, וכשיהיו קבועות בנו אז נהיה ראויים לקבלת הטובה וישלם חפץ השם בנו שחפץ בעולם הזה ובעולם הבא.
It is from the roots of the commandment [that it is] to fix within us the trait of kindness and pity. And when they are fixed within us, we will then be fit to receive the good, and God will fulfill His will through us, as He desires [to do good] in this world and in the next world.
שלא למשכן בעל חוב בזרוע - שנמנענו מלמשכן בידינו בעל חוב כלומר הלווה אלא במצות השופט ועל ידי שלוחו, לא שנקפץ אנחנו ונבוא בבית בעל החוב ונמשכנהו או שנמצאהו בשוק ונחטף המשכון מידו, ועל זה נאמר (דברים כד י) לא תבא אל ביתו לעבט עבטו, ולאו דוקא בית, אלא הוא הדין החוטף מידו בשוק. ולשון המשנה (ב''מ קיג א) המלוה את חברו לא ימשכננו אלא בבית דין, ולא יכנס בביתו לטל משכונו, שנאמר (שם יא) בחוץ תעמד.
To not take surety from a debtor by force: That we have been prevented from taking surety from a debtor - meaning to say a borrower - with our hands by force, bur rather through the command of a judge and through his agent; that we should not jump and come to the house of a debtor and take surety from him or grab a surety from him when we find him in the marketplace. And about this is it stated (Deuteronomy 24:10), "you must not enter his house to seize his pledge" - and it is not specifically the house [that was intended], but the same is true of one who grabs it from his hand in the marketplace. And the language of the Mishnah Bava Metzia 9:13 is "[If] one lends to his fellow, he may not extract surety except through the court, and he may not enter his house to take the pledge, as is written (Deuteronomy 24:11), 'You must remain outside.'"
משרשי המצוה. כדי שלא יהו בני אדם כהפקר וירבה החמס בארץ, שהגדול יהיה בולע הקטן וימשכן אותו בזרוע מבלי פחד אליו, והקטן לא יוכל לקחת דינו מן הגדול מפחדו אליו למעלתו, ועל כן השוה הכתוב ביניהם שלא ימשכן אחד מהן את חברו על חובו, אלא יעשה הכל על פי הדין, ובזה יהיה תקון ישוב העולם, כחפץ השם שבראו להתישב.
It is from the roots of the commandments [that it is] so that people not be as if abandoned and violence increase in the land; that the big one swallow up the small one and take surety from him by force without fear from him, and that the small one not be able to get his case against the big one from fear of his stature. And so, the verse equalized them, such that one not take surety for his debt from his fellow, but rather that it all be done according to the law. And with this will there be a betterment in the civilization of the world - as is the desire of its Creator, that it be [properly] inhabited.

~ Note the constant idea of sefer HaChinuch - following these mitzvot is about insisting in kindness within one's heart, and distancing from violence.

Rabbis will extend this prohibition of interest even to business loans. They will come up with the heter iska, that transforms the lender into a business partner, reframing interest as a contribution to the business. In Israel, a heter iska is signed as part of any loan in the banking system.

The heter iska can in theory be used in all loans, i.e., even humanitarian loans. But it is important not to lose sight of the Torah’s moral problems with charging interest to the poor and people in financial collapse; charging these people interest on loans is a moral problem that is as real today as it was three thousand years ago.

Payday loans are completely prohibited ~ even by the Hammurabi code! ~ all the more so in Jewish thought.

Cost of a payday loan

Many state laws set a maximum amount for payday loan fees ranging from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. By comparison, APRs on credit cards can range from about 12 percent to about 30 percent. In many states that permit payday lending, the cost of the loan, fees, and the maximum loan amount are capped.

source: https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/

Payday loans are forbidden in CT - which caps the interest at 12%, but payday lenders get away with a charge per amount of borrowed money, as above.

Jewish Free Loan societies are the best thing to do. Our Jewish Federation has just opened such a society, and it needs contributions so as to create a pool from which make personal loans that are interest free. Please take a handout and a book mark, and after Shabbat contribute to them.

https://www.kiva.org/ is also an excellent option to help people out of poverty.

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