Introduction
Throughout Scripture, we find a wealth of guidance on financial matters, including lending and charging interest. In “Lending Money with Interest – What Does the Bible Say?” we explore how biblical principles address this practice, examining passages that emphasize fairness, generosity, and care for those in need. We also analyze how lending was conducted in the Old Testament, the warnings against financial exploitation, and how these teachings can be applied to our present reality.
The Theme of Lending Money
The Bible addresses the subject of lending and borrowing money with a strong emphasis on the need for caution and good judgment. It warns that acting unwisely can lead the borrower into greater hardship, while the lender may be tempted to engage in greedy or oppressive behavior, which is not approved in Scripture.
The words “loan“, “lend“, and “borrow” convey the idea that the lender and borrower are “entwined” in a serious commitment. This means that in the Bible, lending or borrowing involves more than just the amount borrowed; it also establishes a personal relationship between the two individuals.
What were Loans Like in Biblical Times?
To the Needy, Interest Free
In ancient Near Eastern societies, such as Babylon, loans were often used for commercial purposes. However, for the Israelites, loans served a charitable purpose. According to Scripture, they were to lend money to those in need without charging interest on the amount borrowed.
Exodus 22:25 – “If you lend money to my people, to the poor who are with you, you shall not treat them as a creditor who exacts interest“
Leviticus 25:35-37 – “If your brother becomes poor and his strength fails, then you shall support him. He shall live with you as a stranger and a sojourner. You shall not take interest or gain from him; but fear your God, so that your brother may live with you. You shall not lend him your money on interest, nor give him your food for gain“
Deuteronomy 15:10 – “You shall give to him freely, and your heart shall not be grieved when you give to him; for therefore the Lord your God will bless you in all your work and in all that you undertake“
Deuteronomy 23:19 – “You must not charge interest to a fellow countryman when you lend him money, food or anything that is usually lent at interest“
To the Stranger, with Interest
Those who lent to the needy trusted in God’s reward, as described in Proverbs 19:17, which states that whoever is kind to the poor lends to the Lord, and He will repay them. However, lending at interest was permitted to foreigners, and those who borrowed were aware that they could be held to a high standard:
Deuteronomy 15:3 – “You may demand payment of your debt from a stranger, but you must cancel whatever you have lent to your compatriots“
Deuteronomy 23:20 – “You may lend to foreigners at interest, but you must not lend to your own countrymen at interest, so that the Lord your God may bless you in all your undertakings in the land you are entering to possess“
Regarding collateral for loans, there were rules to protect those in need. For example, a garment taken as collateral had to be returned the same day (Exodus 22:26), and a widow’s garment could not be demanded as collateral. Furthermore, a creditor was forbidden from entering a debtor’s house to take collateral by force (Deuteronomy 24:10-17).
What Happened to People Who Didn’t Pay Back a Loan?
To collect an unpaid debt, it was common for a creditor to seize the debtor’s property, and in extreme cases, the debtor or their family members could be subjected to slavery. This meant that the debtor could become the creditor’s slave or even sell their own children into slavery (2 Kings 4:1; Nehemiah 5:5-8; cf. Exodus 21:2-11; Leviticus 25:39-43).
However, there was a regulation that provided for debt amnesty. Every seven years, debts could be forgiven, and every six years, those who had become slaves due to unpaid loans were set free (Deuteronomy 15:1-10; Jeremiah 34:14).
Additionally, every fifty years, the Year of Jubilee was observed, during which debts were forgiven and alienated properties were restored, except for those located in walled cities (Leviticus 25).
Does the Bible Prohibit Borrowing or Lending Money Today?
Historical Context
Yes, the Bible does contain stern warnings about lending money at interest and borrowing, particularly in the context of bail bonds. However, it is important to understand these passages in light of the historical context in which they were written.
During the monarchy in Israel, the Israelites likely adopted the lending practices common in neighboring nations, which led to many injustices, especially against poor debtors. As a result, lending at interest came to be regarded as seriously as idolatry and theft:
Ezekiel 18:13 – “… lends money and charges interest, will he live? He will not live. He has committed all these abominations and will be put to death; he is responsible for his own death“
Jeremiah 15:10 – “Woe to me, my mother, that you gave me birth! A man of strife and contention to the whole land! I have neither lent nor borrowed, yet everyone curses me“
Biblical Principles Continue
Despite this historical context, the principles found in the biblical texts about lending money at interest and borrowing remain valid. A Christian is not forbidden from borrowing at interest, but they must understand the implications and dangers of such a commitment.
A Christian should evaluate whether the loan is truly necessary and should never take on debt they cannot repay. Furthermore, once they have borrowed, it is their responsibility to pay off their debts:
Romans 13:7-8 – “Pay everyone what is owed to them: taxes to whom taxes are owed; revenue to whom revenue is owed; respect to whom respect is owed; honor to whom honor is owed. Owe nothing to anyone except to love one another. For whoever loves another has fulfilled the law“
Whoever Borrows Becomes Submissive to the Lender
It is important to remember that the borrower is in a position of submission to the lender:
Proverbs 22:7 – “The rich rule over the poor, and the borrower is servant to the lender“
Likewise, lending also requires caution. While Christians should be generous to those in need, they also have responsibilities to their families. Therefore, they should not lend recklessly in a way that harms those who depend on them at home.
If a Christian is able to lend to someone, they should do so generously, without seeking financial gain from the other person’s difficulties.
Conclusion
In light of the biblical guidelines on lending, we see that God’s Word calls us to responsibility, generosity, and justice in financial matters. Although the Bible does not explicitly prohibit lending money at interest, it does warn against the dangers of greed, exploitation, and recklessness. The central principle is to act with wisdom and integrity, avoiding commitments that could lead to unpayable debts or the oppression of others.
By following these teachings, we strive to balance responsible financial management with compassion for others, reflecting God’s character in our decisions.
May God bless us!
