A Project of the Business Halacha Institute

Under the auspices of HaRav Chaim Kohn�
�
An Interesting Benefit�

I lent my friend $26,000. When the loan was due, he sent me a check for the full amount � plus $461 as interest for the loan. I immediately called and told him that I wouldn�t accept interest for the loan under any circumstances, since it is prohibited. He apologized for the error but told me that I should cash the check and give the $461 as a donation to a tzedaka of my choice. I would love to make a donation to my children�s school� but something about it doesn�t feel right.�

Q: May I cash the check and write a check for $461 to my children�s school?�

A: Shulchan Aruch (Yoreh Deah 160:23) rules that a lender may not stipulate that the borrower must hire him when his services are needed.� For example, if the lender is a painter, he may not stipulate that the borrower hire him if he needs a painter.� Similarly, if the lender owns a retail store, he may not stipulate that the borrower must shop in his store (Bris Yehudah 11:24-25).� At first glance it would seem that this should not violate the prohibition against charging interest, since the borrower is not paying interest to the lender; he is merely hiring him to work as a painter and he is paying him a fair wage for that work.� As such, the lender is not receiving any additional amount of money for the loan and it should be permitted.� The reason this is prohibited is that it constitutes tovas hana�ah � benefit of gratitude.� Although there is a dispute in the Gemara (see Kiddushin 58b) whether tovas hana�ah has intrinsic monetary value, Shulchan Aruch maintains that both positions would agree that it is considered an interest payment.� The only difference between the two opinions is whether it is Biblically prohibited or prohibited by Rabbinic injunction.� Accordingly, to accept the additional $461 to give to your children�s school is a form of tovas hana�ah. The prohibition of ribbis applies even if it was not stipulated at the issuing of the loan. Therefore, here, too, it is prohibited to give the $461 to tzedaka. You should return the check to the borrower and ask him to write you a check for the exact amount of the loan.�

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Please be advised: These articles are for learning purposes only and cannot be used for final halachic decision.

(YWN Desk � NYC)