Why Can Jews Charge Interest to Non-Jews?

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In this episode of Dear Rabbi, I address a question about Jewish lending practices: Why are Jews allowed to charge interest to non-Jews? The answer reveals deeper Jewish values about family, community, and morality.

First, let me be clear: there's nothing immoral about charging interest. If I rent out a car, there's a price for that rental. If I rent out my money, there's a price for that too. Interest is simply the price for renting money; it's a fair economic transaction.

The reason Jews don't charge other Jews interest is because we see the entire Jewish people as a family. While there's nothing wrong with charging someone interest in a business transaction, if your brother asks to borrow money and you charge them interest, it's not the nicest thing to do. The Torah sets a very high bar for us, demanding that we lend to our brothers and sisters without interest.

We lend to them because it's the right thing to do and because we love them and care for them, not because of the interest we might gain. This practice reflects the Jewish principle of seeing our people as one family bound together by covenant and mutual responsibility.

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