Loans and interest in Judaism
Alright kiddo, let me explain loans and interest in Judaism in simple terms.
You know how sometimes, you borrow toys from your friends and promise to return them? Similarly, adults borrow money from others and promise to repay it back. In Judaism, there are rules for borrowing and lending money, and one of the important things to remember is about interest.
Interest is like an extra fee that lenders charge to borrowers for lending the money. For example, if you borrow $10 from your friend and agree to return $12, then $2 is the interest.
In Judaism, it is considered unfair to charge excessive interest, especially to someone who is in need of financial help. This is because it could create a cycle of debt that people may struggle to get out of.
Judaism also teaches us to act with compassion and generosity towards others, especially those who are in need. So, if someone is in need of money and approaches you for help, as a lender you should be willing to help them without charging any interest or with minimal interest.
In fact, Judaism encourages the act of lending people money without any interest, known as "gemach." This is a way to provide interest-free loans to people who are struggling financially and cannot afford to borrow money from banks or other institutions.
Moreover, in Judaism, it is recommended to forgive the debt of a person who is unable to repay the loan after a certain period of time. This act of forgiveness is known as "shmita."
Overall, Judaism teaches us to be responsible borrowers and lenders, and to treat others with compassion and kindness, especially in financial matters.
You know how sometimes, you borrow toys from your friends and promise to return them? Similarly, adults borrow money from others and promise to repay it back. In Judaism, there are rules for borrowing and lending money, and one of the important things to remember is about interest.
Interest is like an extra fee that lenders charge to borrowers for lending the money. For example, if you borrow $10 from your friend and agree to return $12, then $2 is the interest.
In Judaism, it is considered unfair to charge excessive interest, especially to someone who is in need of financial help. This is because it could create a cycle of debt that people may struggle to get out of.
Judaism also teaches us to act with compassion and generosity towards others, especially those who are in need. So, if someone is in need of money and approaches you for help, as a lender you should be willing to help them without charging any interest or with minimal interest.
In fact, Judaism encourages the act of lending people money without any interest, known as "gemach." This is a way to provide interest-free loans to people who are struggling financially and cannot afford to borrow money from banks or other institutions.
Moreover, in Judaism, it is recommended to forgive the debt of a person who is unable to repay the loan after a certain period of time. This act of forgiveness is known as "shmita."
Overall, Judaism teaches us to be responsible borrowers and lenders, and to treat others with compassion and kindness, especially in financial matters.