Confidential by defaultEstablished 201072 Jurisdictions

Ribbit

Ribbit is the Jewish-law prohibition on receiving or paying certain forms of interest on a loan between Jewish parties.

Also called: Ribbis · interest in Jewish law

The issue is not merely whether the rate is excessive: even a small predetermined increase can matter if it is paid because money was lent and repayment was delayed. Jewish law distinguishes a loan from a genuine investment, which is why structures such as Heter Iska can be relevant.

In practice

Common mistake: treating ribbit as a usury cap. It is a transaction-classification rule, not simply a maximum percentage.

Ribbit

In practice

See also