What Does the Bible Say About Lending Money to Others?

The Bible contains extensive guidance on how individuals should approach financial interactions, particularly concerning the practice of lending money to others. These ancient texts offer a framework for understanding economic relationships, emphasizing principles of justice, compassion, and community welfare. The teachings found within biblical narratives and laws address various aspects of lending, from the motivation behind offering assistance to the detailed regulations surrounding repayment and collateral. This instruction shows how financial transactions reflected broader ethical and moral obligations.

The Command to Lend and Show Compassion

Biblical texts frequently highlight the importance of lending to those in need as an act of compassion and generosity. This directive is an expectation for those who adhere to the principles outlined in scripture. It underscores a responsibility to support members of the community facing financial hardship, ensuring they are not left to suffer. Such actions are presented as reflections of a benevolent character, aligning with divine expectations.

Scripture encourages an open-handed approach to lending, particularly towards the poor. Deuteronomy instructs individuals not to be hard-hearted or tight-fisted toward a needy brother, but rather to open their hand wide and lend sufficiently for their need. This generosity is portrayed as a means through which blessings can be received in all undertakings. The command extends even to situations where the time for debt remission is near, urging against reluctance to lend for fear of losing the loan.

Lending to the poor is depicted as an investment in a higher purpose. Proverbs states that whoever gives to the poor lends to the Lord, and He will repay them for their deed. This perspective elevates acts of charity beyond simple financial transactions, imbuing them with spiritual significance. The righteous are described as being ever merciful and lending, with their descendants also receiving blessings. This suggests that compassionate lending contributes to a lasting legacy of well-being.

The Prohibition Against Charging Interest

Biblical law contains clear prohibitions against charging interest, especially when lending to fellow Israelites or the impoverished. The term “usury” in this context refers to any interest, not just excessive rates, particularly concerning loans made to assist someone in distress. This restriction was rooted in a desire to prevent the exploitation of those facing financial difficulties and to foster community support rather than profit from hardship. The focus was on loans for subsistence, helping a person meet basic needs rather than commercial ventures.

Exodus states that if one lends money to a poor person among their people, they should not be like a moneylender or exact interest from them. This means avoiding any gain from a loan given to a struggling individual. Leviticus reinforces this by instructing not to take usurious interest or profit from a countryman who has become poor, emphasizing the need to sustain them. It explicitly forbids giving silver at interest or food for gain to a fellow Israelite.

Deuteronomy reiterates the command not to charge interest on loans to a brother, whether on money, food, or anything else that could be lent for interest. This prohibition extended to all forms of increase on loans made within the community. The prophet Ezekiel further condemns those who engage in usury and take increase, stating that such actions are abominations. He highlights that a righteous person is one who does not lend money at interest or take profit.

Guidance on Debt and Repayment

Biblical teachings address the responsibilities of both the borrower and the lender concerning debt, emphasizing integrity and patience. Borrowers are expected to honor their commitments and repay what they owe. Psalm 37:21 notes that the wicked borrow and do not repay, while the righteous are generous and give. This highlights the importance of fulfilling financial obligations as a characteristic of righteous conduct.

Proverbs 22:7 states that the borrower is servant to the lender, suggesting a position of dependence that should ideally be avoided. While borrowing is sometimes necessary, scripture implies that a person should strive to be in a position to lend rather than perpetually borrow. The emphasis is on careful financial management and a commitment to avoid remaining in debt.

The law also incorporated provisions for debt release and lender patience. Deuteronomy outlines a system where, at the end of every seven years, a release of debts was to be granted. This sabbatical year provided a fresh start for those burdened by debt, preventing perpetual servitude or economic disenfranchisement within the community. This practice underscored a societal commitment to preventing extreme poverty and maintaining a degree of economic equity.

Rules for Pledges and Collateral

Specific rules were established regarding the taking of pledges or collateral for loans, emphasizing humanitarian considerations. These regulations aimed to protect vulnerable borrowers from undue hardship. The law forbade taking certain items as security if they were essential for a person’s livelihood or well-being. This demonstrated a concern for the borrower’s ability to sustain themselves, even when indebted.

For instance, Deuteronomy explicitly prohibits taking a handmill or an upper millstone as a pledge. These items were crucial for grinding grain to make daily bread. Seizing them would deprive a family of their means of sustenance, which was considered equivalent to taking a life in pledge. This rule ensured that a lender could not inadvertently cause a borrower to starve or be unable to work.

Furthermore, if a poor person offered their cloak as collateral, the lender was required to return it to them by nightfall. The cloak often served as a bed covering, and keeping it overnight would expose the individual to cold and discomfort. The lender was also forbidden from entering the borrower’s house to seize a pledge; instead, the borrower was to bring the item out. These provisions ensured that even in financial distress, the borrower’s dignity and basic needs were respected.