What Is Usury According to the Bible?

Usury, often associated with excessive interest rates or predatory lending today, holds a distinct meaning in biblical texts. While modern definitions focus on illegal or unfairly high interest, the ancient understanding, particularly in the Old Testament, encompassed charging any interest on certain loans. This differs significantly from today’s financial markets, where interest is standard. The biblical narrative emphasizes social welfare and community responsibility over individual profit in specific circumstances.

Defining Usury in the Bible

In ancient Israelite society, usury referred to charging interest or any gain on loans made to fellow Israelites, particularly those in financial distress. Unlike modern systems where interest is a legitimate cost, biblical loans were often for subsistence, designed to help individuals survive hardship like crop failure or illness, rather than for commercial ventures.

The Hebrew terms translated as “usury” or “interest” are neshekh and tarbit (or marbit). Neshekh literally means “a bite,” conveying that interest “bites” into the borrower’s livelihood, causing harm. Tarbit or marbit refers to an “increase” or “gain” taken by the lender.

Many biblical scholars assert there is no substantive difference between neshekh and tarbit; both refer to forbidden interest. The use of both terms reinforced the prohibition against any profit from loans to the needy. This understanding emphasizes that a loan to a distressed neighbor was an act of mercy and charity, not a commercial transaction.

Biblical Prohibitions and Context

The prohibition against usury is a recurring theme in the Old Testament, outlining a moral and legal framework for ancient Israelite society. These commands were embedded within covenant law, reflecting how the community was to conduct financial dealings. Scriptural references explicitly forbid charging interest to fellow Israelites, particularly the poor.

Exodus 22:25 states, “If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him.” Leviticus 25:35-37 reinforces this, commanding, “If your brother becomes impoverished and cannot support himself among you, help him as you would a foreigner or stranger, so that he can continue to live among you. Do not take any interest or profit from him.” These passages emphasize compassion and preventing further financial burden on the vulnerable.

Deuteronomy 23:19-20 clarifies, “You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. You may charge a foreigner interest, but you may not charge your brother interest.” This instruction applies broadly to any loan or commodity. Prophetic books also condemn usury as social injustice; Ezekiel 18:13 and 22:12 denounce those who take interest, linking it to oppression. Psalms 15:5 describes the righteous person as one who “does not put out his money at interest.”

Distinctions in Biblical Lending

While biblical prohibitions against usury are clear, texts also present distinctions regarding lending practices, particularly concerning the borrower’s identity. A key difference exists between lending to fellow Israelites and lending to foreigners. The prohibition against charging interest primarily applied to loans within the Israelite community, often called “your brother” or “neighbor.”

Deuteronomy 23:20 explicitly permits charging interest to a foreigner while forbidding it to a fellow Israelite. This distinction reflects the unique covenantal relationship and communal obligations among the people of Israel. Foreigners were not bound by the same covenantal obligations, and commercial dealings with them could include interest.

Loans to foreigners were often considered business transactions, operating under different economic principles than loans within the covenant community. Charging interest to foreigners also recognized that foreign merchants might charge interest on loans to Israelites, creating a reciprocal basis for trade. This approach ensured fairness in international commerce while preserving the internal ethic of compassionate lending within Israel.

Underlying Principles of the Prohibition

The biblical prohibition of usury was rooted in theological, social, and economic principles designed to foster a just and compassionate society. It emphasized communal welfare and mutual support within the Israelite community. Loans to those in need were acts of charity, preventing permanent economic hardship rather than opportunities for profit.

The concept of God’s ownership of all resources played a significant role. Wealth was viewed as entrusted by God, to be used responsibly to alleviate suffering, not to exploit the vulnerable. This outlook encouraged generosity and discouraged wealth accumulation through oppression. Loans were acts of compassion for survival in an agrarian society facing challenges like famine or livestock loss.

Preventing perpetual debt and economic oppression among the poor was a key objective. The biblical framework aimed to ensure no one became trapped in an endless debt cycle, which could lead to servitude or loss of ancestral land. Practices like the Sabbath year, where debts were forgiven, and the Jubilee year, involving land return to original owners, illustrate this commitment to economic reset and preventing extreme wealth disparities. These principles underscored a vision of a society where financial dealings mirrored divine mercy and justice.