Bava Metzia 74 - Commodity Loans
Commodity loans - such as a loan of a bag of wheat to be repaid with a bag of wheat at a later date - are generally prohibited. If the price of the commodity increases in the interim, the lender will receive back more value than he lent, which constitutes interest. The correct way to give such loans is to estimate the value of the bag when it is given, and later return the amount of wheat of equal value.
Nevertheless, a person may lend his sharecropper wheat to be used as seeds, for repayment of the same amount of wheat after the harvest. In this case it is not a commodity loan but terms of shareholder agreement.
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