How does Halacha address interest in financial matters?

The prohibition of interest in Halacha is a significant aspect of Jewish law pertaining to financial matters. This principle derives from several biblical sources, primarily found in the Torah, where it explicitly states that Jews are prohibited from charging interest on loans to fellow Jews. This prohibition is rooted in the ethical imperative to maintain fairness and support within the community, ensuring that one's financial dealings do not exploit others.

Halacha emphasizes compassion and reciprocity in financial transactions, and charging interest is seen as taking advantage of another's need. Consequently, the prohibition applies to loans, payments, and various forms of financial dealings, effectively promoting a model of mutual assistance rather than profit from hardship.

Moreover, while different interpretations and applications of this prohibition exist—particularly in the context of non-Jewish interactions, where some leniencies may apply—there is a clear and robust expectation that interest among Jews is to be avoided entirely. This foundational principle reflects the broader ethos of justice and community support central to Halachic teachings.