Q&A: The Logic of Interest
Originally published:
This is an English translation (via GPT-5.4). Read the original Hebrew version.
The Logic of Interest
Question
What is the reasoning behind the prohibition of interest? How does the Talmud say that one can derive the prohibition of theft from interest? Why is it permitted to pay money for anything else, but not to pay money for a loan? Why is this defined as “diminishing another person’s property,” in Rashi’s wording?
Answer
These are good and longstanding questions, and I do not have good answers to them. Of course, once there is a prohibition, this counts as taking away money from the other person. But that is not an explanation; it is a halakhic definition.