In the Gemara we say that Tzreiri or a bundle of coins might have been given by the yesomim's father and therefore the bal chov can't collect. On Umud beis we say that by a malveh oved kochavim the tzreri is given to the arev so that he would become an urev.
Why would the debtor give the"bundle of coins" to the urev why not take out a smaller loan or just use it to pay back his original loan. I mean if he has the coins why can't he just pay back with them or use them for himself?
Y. Mann, New York, USA
I think the simple explanation is as you implied, that the amount of coins is less than the amount of the loan. As for why can't he take out a smaller loan, there are many possible rational reasons why one would have a small amount of cash but take out a large loan when he only needs the large amount. One possibility that comes to mind is that the lender might not lend small amounts, with his minimum starting amount being exactly what the borrower needs. Especially with Nochrim who lend money for interest, it makes sense that they would not want a small loan, but rather a large loan which usually came along with high interest. They would therefore not be interested in early repayment.
All the best,