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Chapter 65:4-6
Dealing with Forbidden Goods

4. Even if, at the outset, no interest was stipulated, and the borrower voluntarily adds to the amount he owes when he repays the debt without referring to the increase as interest, this, too, is forbidden.

5. Even when the borrower explicitly states that he is giving the increase as a present, the lender is forbidden to accept it from him. However, under such circumstances, should the lender have already accepted the interest he took, if the borrower foregoes repayment, the lender is not obligated to return the money.

6. It is also forbidden to pay interest before or after taking a loan. For example, Reuven wanted to borrow money from Shimeon. Therefore, he sent him a present beforehand, explicitly telling him that the present was being given so that he would grant him the loan. Alternatively, he sent him a very large present with the obvious implication that he was doing so in order to receive a loan.

The above exemplifies interest given before a loan. An example of interest being given after a loan is a person who took a loan, repaid it, and, afterwards, sent the lender a present in appreciation.

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