Should Christians charge poor people interest on loans?
Biblical prohibitions on
ESV "You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.
The Biblical doctrine of usury rests primarily on three texts: Exodus 22:25; Leviticus 25:35; and Deuteronomy 23:19-20. Exodus and Leviticus prohibit loans of money or food with interest to a needy brother or sister or even a resident alien. Deuteronomy forbids taking interest from any person.
What the Bible says about borrowing: Exodus 22:14 - If anything is borrowed, it should be paid back. If what is borrowed is lost or injured, full restitution must be made. Ps 37:21 - The wicked borrows but does not pay back, but the righteous is generous and gives.
Biblical prohibitions on usury were later redefined as prohibitions on lending at excessive interest rates. Today, charging interest on loans is an everyday part of life. Modern Christian leaders condemn excessive interest rates, but not the lending of money itself.
Pay everyone whatever you owe them. If you owe taxes, pay them.
Romans 13:8 (AMPC) tells us to Keep out of debt and owe no man anything, except to love one another... My husband, Dave, says that if we learn to live within our income, or our borders, then God will bless us.
Romans 13:8
8 Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.
The ban on charging interest to fellow Israelites included interest on money, food, or anything that may be loaned at interest. The list here implies that the borrower was in desperate need and was in economic hardship because it included money and food, things necessary for life itself.
In the New Testament, Christians were warned to not go into debt, as we are free from bondage due to the redemptive work of Jesus. 1 Corinthians 7:23 “You were bought with a price; do not become bondservants of men.”
Where in the Bible does it say not to lend money with interest?
Deuteronomy 23:19 New King James Version (NKJV)
“You shall not charge interest to your brother—interest on money or food or anything that is lent out at interest.
Similarly, in Deuteronomy 15, God says that every seven years, creditors should “remit the claim that is held against a neighbor” because “the Lord's remission has been proclaimed.” In the New Testament, Jesus instructs his followers to pray “forgive us our debts, as we also have forgiven our debtors” (Matthew 6:12, ...
God blesses those who make money through honest work rather than sinful practices. God calls us to pay back what we owe and help those who have helped us. It's wise for us to plan, think through how we'll make money, and spend money. Saving money can help set us up for future financial success.
In the U.S., each state sets its own usury laws and usurious rates. So a loan or line of credit is deemed unlawful if the interest rate on it exceeds the amount mandated by state law. Usury laws are designed to protect consumers.
Most churches make it a priority to get out of debt using capital campaigns, devoting extra offerings to principal payments or special fundraising emphases. Many of our churches take out a loan with a 20-year term, but the vast majority pay it back within five to seven years. That's good stewardship.
The Catholic Church still forbids usury, meaning extortionate charges, providing penalties in c2354 of the Code of Canon Law, but this does not mean that all interest-taking is sinful. The Vatican itself invests in interest-bearing schemes, and requires Church administrators to do likewise.
Deuteronomy 15:8 says, “You shall open your hand to him and lend him sufficient for his need, whatever it may be.” Turning to the New Testament, in the Sermon on the Mount, Matthew 5:42, Jesus says, “Give to the one who asks you, and do not turn away from the one who wants to borrow from you.”
Interest is deemed riba, or an unjust, exploitative gain, and such practice is forbidden under Islamic law. In Islamic finance, riba refers to interest charged on loans or deposits. Religious practice forbids riba, even at low interest rates, as both illegal and unethical or usurious.
“The wicked borrow and do not repay, but the righteous give generously.” - Psalm 37:21. As Christians, we know that paying our debts is important.
Proverbs 22:26-27 New Century Version (NCV)
Don't promise to pay what someone else owes, and don't guarantee anyone's loan. If you cannot pay the loan, your own bed may be taken right out from under you.
Is it a sin to borrow money?
Romans 13:5-10 - NASB
Borrowing money is not a sin.” Instead, it is a sin to borrow and not pay back what is owed.
Financial freedom means having enough to provide adequately for your household and to give generously and joyfully to God's work. God wants you to be financially free so you can put Him first in your life and be sensitive to His voice, ready to follow Him whenever -- and wherever -- He leads.
Be careful how you lend and when you borrow. Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” This isn't a warning to never lend money as some have used it. It's a caution about what happens when imperfect sinners lend and borrow from each other.
It doesn't say that it's a sin to borrow
While the Bible offers many warnings about the dangers of debt, it never says that you are out of God's will or violating one of God's commandments when you borrow. We can debate the wisdom of incurring debt under certain circ*mstances, but it's never a black-and-white issue.
Romans 13:8 (AMPC) tells us to Keep out of debt and owe no man anything, except to love one another... My husband, Dave, says that if we learn to live within our income, or our borders, then God will bless us.
