Lending money to a person who has no means of paying back

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Lending money to a person who has no means of paying back:[1]

If the lender knows that the borrower does not have the means to pay back the loan, and does not plan to invest the money in a business which will bring profit, but rather wants to use it in a way that will not produce any income and will leave the lender without the means of collecting his debt, then not only is he not obligated to lend him the money, but it is even better not to do so.[2] [If, however, one knows that the borrower has income coming in that can cover the loan, or that he owns items that can be sold to cover the loan, then he is allowed to lend him the money.[3] Nevertheless, he is not obligated to lend him money simply on the basis that he can sell his items, if there is worry that he may not do so.[4]]

 

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[1] Admur Halva 5; Michaber C.M. 97:4; Tur C.M. 97:8

[2] The reason: As in the end he will need to pressure him to pay back the money and will transgress each time the prohibition of “Lo Sihyeh Lo Kenoshe.” [Admur ibid]

[3] See Ahavas Chesed Dinei Halvah 1:9 that if a Mashkon is given he may lend him the money if he wants, and the same would apply to if he has items he can sell, as Admur Halvah 13 rules that so long as one has more than Sidrei Baal Chov one does not transgress “Lo Siyeh Lo Kinoshe”

[4] See Avnei Yashpei 2:119

About The Author

Rabbi Yaakov Goldstein is a 6th generation descendent of the famous Chief Rabbi of Izhmir, Rav Yehoshua Avraham Krispin, who authored a number of Sefarim, and was a colleague of Rav Chaim Falagi, and father in-law of the Pesach Hadvir. He currently lives with his wife Shayna, and twelve children K”H, in Tzfas, Israel. Rabbi Goldstein received Semicha from Rabbi Schneur Zalman Labkowski of the Tomchei Temimim headquarters in 2005 and served as a chaplain in the Lotar/Kalatz and K9 unit of the IDF from years 2005-2008. He is also a certified Shochet, and has performed Hashgacha work in slaughterhouses. Rabbi Goldstein is the director of Shulchanaruchharav.com, the world’s leading web-based Halacha database, and is the director of the Home Study Semicha Program, a self-study web-based Semicha program. He is a prolific author of over 50 Sefarim studied by a wide range of readers throughout the world, which is used regularly in Semicha programs around the globe. He is a world renowned Posek, answering questions to a web-based market, and serves as a local Posek, Rav, and Lecturer, in the Tzemach Tzedek community Shul in Tzefas, Israel. His many classes can be heard both from his website, Vimeo and YouTube channel. Students can join live to classes given in the Tzemach Tzedek Shul, through the “בית חבד צפת Chabad Tsfat” YouTube channel.

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