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Money Matters - Borrowed Bike Wreck
Submitted by chaim  Answered by Rav Yehonoson Hool
Question:
Answer: The prohibition of paying interest applies to loans and payments etc. There is no prohibition of paying interest when returning stolen money. It would seem to me that the responsibility that a borrower accepts for the borrowed item can, in this regard, be more comparable to the case of returning stolen money than the case of repaying a loan. As such there would be no prohibition of adding extra money, particularly so in this case (in which you are not giving back more money, but rather a similar object although  is worth more).
posted:2009-04-30 14:39:32

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