Chapter 45

Deliberation on Interest in Loans

One should never lend to women, slaves, or children; the lender will not get it back, whatever wealth he may give to them. // K_497 //

That higher interest which is stipulated by the debtor, if made in a time of distress, must always be paid; it is stipulated interest. Otherwise, stipulated interest should never be paid. // K_498 //

Where one completely clears the interest with the debtor, and he pays it at every period, that is known as compounding interest. // K_499 //

Satisfaction from a house and fruit from a field are declared to be profit from enjoyment. // K_500 //

When the entire enjoyment of a pledge is stipulated as interest, and the transaction is of that nature, it is called a usufructuary pledge. // K_501 //