What Does the Bible Say About Lending Money?

The Bible provides guidance on financial dealings, offering timeless principles for managing resources and interactions involving money. Its wisdom focuses on ethical conduct and community well-being, illuminating how financial activities align with broader moral and spiritual principles.

Principles of Lending to the Needy

The Old Testament contains clear directives regarding lending money, particularly to those in distress. Exodus 22:25 instructs against charging interest to an impoverished fellow Israelite, underscoring a societal obligation to support community members in hardship. Leviticus 25:35-37 further reinforces this, stating that if a “brother” becomes poor, one should support them, taking no interest or profit.

Deuteronomy 15:7-8 urges an open-handed approach to lending to the poor, emphasizing that one should not harden their heart. This passage also introduces debt cancellation every seven years, ensuring perpetual debt did not burden individuals. These laws aimed to prevent exploitation and foster a supportive society, using lending to alleviate poverty and maintain social cohesion, not for personal enrichment.

The New Testament builds upon these themes with broader principles of generosity and selfless giving. Jesus’ teaching in Luke 6:34-35 encourages lending without expecting repayment, extending generosity even to adversaries. Matthew 5:42 similarly advises against turning away from someone who wishes to borrow. These teachings underscore a spirit of open-handedness and a willingness to meet the needs of others. Proverbs 19:17 states that kindness shown to the poor is akin to lending to the Lord.

The Biblical View on Interest

The concept of “usury” in biblical texts refers to charging any interest on loans. Old Testament law explicitly prohibited Israelites from charging interest to fellow Israelites, especially for survival loans (Exodus 22:25, Leviticus 25:36-37, Deuteronomy 23:19). This prohibition aimed to protect the poor and vulnerable, ensuring financial assistance did not worsen their situation.

A notable distinction within these laws is found in Deuteronomy 23:20, which permitted charging interest to foreigners. This was not an endorsement of exploitation, but rather a recognition of different relational and economic contexts. Foreigners were not bound by the same covenant obligations as fellow Israelites, and commercial transactions with outsiders were viewed differently than loans to needy community members. This distinction reflected the common trade practices of the ancient Near East and acknowledged that such dealings were often for business ventures rather than for basic survival.

Throughout the prophetic books, charging interest was condemned when it became a tool of oppression or a symptom of moral decay within society. Prophets often linked such practices with broader injustices, highlighting the importance of equitable treatment. While the New Testament does not revisit specific laws on interest, its overarching themes of generosity, love for one’s neighbor, and avoiding greed implicitly reinforce the spirit of the Old Testament prohibitions. The emphasis remains on compassion and ensuring that financial dealings do not lead to the exploitation of others.

Responsibility in Borrowing

While the Bible encourages lending to those in need, it also provides guidance on the borrower’s responsibilities. Proverbs 22:7 states that “the borrower is servant to the lender,” highlighting the inherent power dynamic and potential loss of freedom associated with debt. This verse underscores the importance of financial prudence and wise stewardship, cautioning against the burdens and limitations debt can impose on future financial decisions and personal liberty.

A fundamental biblical principle concerning borrowing is the moral obligation to repay what is owed. Psalm 37:21 contrasts the “wicked” who borrow and do not repay with the “righteous” who are generous and give. This emphasizes the importance of integrity and faithfulness in all financial commitments. While borrowing itself is not inherently sinful, failing to repay a debt is presented as a serious moral failing.

Before undertaking any financial commitment, including borrowing, it is prudent to carefully assess one’s ability to repay. Luke 14:28, for example, encourages individuals to “count the cost” before embarking on significant endeavors. This principle applies directly to debt, advising careful planning and consideration of long-term implications. The Bible consistently advocates for living within one’s means and prioritizing financial health to avoid the potential pitfalls and burdens of unmanageable debt.