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.
Learn more on Money Wiki
This page gives the short answer. Money Wiki has a longer guide to Ribbit, with more detail and background.
See also
- Heter IskaA Heter Iska is a Jewish-law financing agreement that structures an advance wholly or partly as an investment relationship so the provider can receive investment profit rather than prohibited interest on a simple loan.
- IskaAn iska is a Jewish-law investment or venture arrangement in which supplied capital is treated through a combination of investment and, in some forms, loan characteristics.
- RibaRiba is the prohibited increase at the centre of Islamic finance: an unjustified excess in a loan or in certain exchanges. It is broader than the English word "interest" and is not limited to excessive rates.
- UsuryUsury is the charging of interest on a loan that the law or a religious tradition treats as wrongful. For most of its history it meant any agreed return on a loan of money; today it usually means interest above a legal ceiling.
Page Last Updated: 01-Oct-2026