Ribbis: Matters of Interest

USUAL AND UNUSUAL FAVORS

May
a person do favors for someone he owes money to? For example, Reuven, who owes
Shimon money, was in a sefarim store and saw a sefer Shimon always wanted. May
he do him a favor and buy the sefer? What if they always exchange favors? What
if they became friends through the loan process?

A
teacher lent money to a student for a taxi ride home. May the student chip in
to buy the teacher a Chanukah present while the loan is outstanding?

Many people will assume that
these questions, or those that follow, do not apply to them since they don’t
owe any serious money to anybody. However, this is a mistake.

As explained in the overview,
aside from borrowing money or commodities, the status of a “borrower” in halachah can be achieved in many ways.
Purchasing merchandise on credit falls into this category. Until the buyer pays
his bill he is considered a “borrower,” and the seller, a “lender.” Similarly,
after workers complete a project or a repair, the employer is considered a
“borrower” and the employees “lenders,” as the job has ended and the wage
payment is outstanding. Owing money for tuition is also considered borrowing.

When such titles are
conferred, the laws of ribbis will apply in some form or another.

One important ribbis
restriction is that the borrower may not benefit the lender in connection to
the loan. Offering favors is viewed as overpayment, and therefore a form of
ribbis. This is forbidden between friends just as between strangers, rich or
poor.

However there are certain laws
related to extending favors which are sometimes relaxed between friends,
depending on the level of friendship. People may know each other, but are not
necessarily considered friends. The parties must determine the level of
friendship before extending or requesting favors.