Pruzbul - Overview

Q. What is a Pruzbul?

A. We are now in the midst of a shemita year. Shemita has a number of aspects, and one is known as shemitas kesafim, the abrogation of loans, at the conclusion of the shemita year. The Torah (Devarim15:1-2) instructs “at the end of seven years…every creditor should release his authority over what he lent his friend.” As such, loans that are not collected before this coming Rosh Hashana, may not be collected afterwards. The Gemara (Gittin 36a) relates that Hillel saw that people were reluctant to lend money as the shemita year was drawing near its conclusion, out of concern that their loan might be canceled. The Torah (Devarim 15:9) forbids withholding loans because of such considerations. To address this problem, Hillel established a special Rabbinic contract known as a Pruzbul, which provides a legal loophole that allows a loan to be collected even after the conclusion of the shemita year. Pruzbul benefited both the wealthy and the poor. The wealthy continued to lend and did not violate the prohibition against withholding loans in a shemita year, and the poor were able to borrow needed funds.

How does Pruzbul protect the loan? The Pruzbul contract transfers the loan to a beis din (Jewish court). The abrogation of loans by shemita only applies to loans held by people and not by a beis din. At the end of the shemita year the loan remains in force, and beis din authorizes the creditor to collect the loan on their behalf.

Why was it necessary for Hillel to institute Pruzbul, if shemitas kesofim does not apply to a beis din? The Sm”a (CM 67:22) explains that if one actually handed the loan contract to a beis din before Rosh Hashana, a Pruzbul would be unnecessary. However, this was not always practical, and Hillel’s innovation was that a Pruzbul can be executed without handing the actual loan contract to beis din.

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The Gerald & Karin Feldhamer OU Kosher Halacha Yomis is dedicated to the memory of Rav Yisroel Belsky, zt"l, who served as halachic consultant for OU Kosher for more than 28 years; many of the responses in Halacha Yomis are based on the rulings of Rabbi Belsky. Subscribe to the Halacha Yomis daily email here.