What the Bible Really Says About Money Lending: A Deep Dive

The Bible’s perspective on money lending is complex and nuanced, evolving across different testaments and contexts. Broadly speaking, the Old Testament discourages lending with interest to fellow Israelites in need, emphasizing brotherly love and mutual support within the community. Conversely, lending to foreigners with interest was permitted. The New Testament shifts the focus towards generosity, compassion, and a non-materialistic worldview, without explicitly prohibiting all forms of lending with interest, but heavily implying that love and selfless giving should supersede financial gain from those in need.

The Old Testament: Protecting the Vulnerable

The Old Testament laws regarding lending are primarily found in the books of Exodus, Leviticus, and Deuteronomy. These laws were embedded in a social and agricultural context where poverty and hardship were common realities. The core principle was to protect the vulnerable members of the Israelite community from exploitation.

No Interest to Brothers in Need

The most frequently cited verse is Exodus 22:25: “If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest.” This verse establishes a clear prohibition against charging interest when lending to a fellow Israelite who is in need.

Leviticus 25:35-37 further elaborates on this principle, emphasizing that lending should be an act of brotherly assistance, not a profit-making venture. This passage extends the prohibition to include not only money but also food: “If any of your fellow Israelites become poor and are unable to support themselves among you, help them as you would a foreigner residing among you, so they can continue to live among you. Do not take interest or any profit from them, but fear your God, so that they may continue to live among you. You must not lend them money at interest or sell them food at a profit.”

Deuteronomy 23:19-20 provides an interesting contrast: “Do not charge a fellow Israelite interest, whether on money or food or anything else that may earn interest. You may charge a foreigner interest, but not a fellow Israelite, so that the Lord your God may bless you in everything you put your hand to in the land you are entering to possess.” This verse highlights the in-group/out-group dynamic present in the Old Testament law. While lending with interest to fellow Israelites was forbidden to protect them from exploitation, lending with interest to foreigners was permitted, perhaps as a means of economic advantage.

Gleaning and Debt Release

The Old Testament also included other provisions to alleviate poverty and prevent long-term debt bondage. The practice of gleaning (leaving leftover crops in the fields for the poor to gather) provided a safety net for the needy. Furthermore, the Year of Jubilee, which occurred every 50 years, mandated the cancellation of debts and the return of land to its original owners, preventing families from falling into permanent poverty. These laws aimed to create a more equitable society where wealth was redistributed periodically.

The New Testament: Love, Generosity, and a Different Perspective

The New Testament shifts the focus from strict legalistic rules to principles of love, generosity, and selflessness. While it doesn’t explicitly repeal the Old Testament laws regarding lending, it emphasizes a different perspective on wealth and material possessions.

Lending Without Expecting Return

Luke 6:34-35 presents a radical concept: “And if you lend to those from whom you expect repayment, what credit is that to you? Even sinners lend to sinners, expecting to be repaid in full. But love your enemies, do good to them, and lend to them without expecting to get anything back. Then your reward will be great, and you will be children of the Most High, because he is kind to the ungrateful and wicked.”

This passage encourages a higher standard of giving and lending, motivated by love and compassion rather than the expectation of financial return. It challenges the conventional wisdom of lending only to those who are likely to repay, urging believers to extend generosity even to those who may not be able to reciprocate. This emphasis on selfless giving implicitly discourages profiting from the misfortune of others through interest-bearing loans.

Focus on Spiritual Riches

The New Testament frequently warns against the dangers of wealth and materialism. Jesus’ teachings emphasize the importance of storing up “treasures in heaven” rather than on earth (Matthew 6:19-21). The parable of the rich fool (Luke 12:16-21) illustrates the folly of accumulating wealth for oneself while neglecting spiritual matters. These teachings suggest that a focus on earthly riches can distract from the true purpose of life, which is to love God and serve others.

The Parable of the Talents

The parable of the talents (Matthew 25:14-30) is often cited in discussions about responsible stewardship of resources. However, it’s crucial to understand that the parable is primarily about using one’s gifts and abilities to serve God, rather than a straightforward endorsement of financial investment for personal gain. While it does illustrate the importance of being productive and resourceful, it doesn’t necessarily justify charging interest on loans to those in need.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about the Bible and money lending:

1. Does the Bible explicitly forbid all lending with interest?

No, the Bible doesn’t explicitly forbid all lending with interest. The Old Testament prohibits it specifically to fellow Israelites in need, while the New Testament emphasizes generosity and selfless giving, indirectly discouraging profiting from the vulnerable.

2. Is it a sin for a Christian to charge interest on a loan?

It depends on the context. Charging interest to someone in dire need is generally considered unbiblical. However, charging fair interest in a business transaction with someone who is not in need might be viewed differently.

3. What is “usury” and is it condemned in the Bible?

Usury traditionally refers to excessive or exorbitant interest rates. While the Bible doesn’t explicitly define a specific interest rate as usurious, it condemns exploiting the poor through excessive financial burdens.

4. Does the Old Testament law against interest still apply today?

Many Christians believe that the specific Old Testament laws regarding interest were tied to the socio-economic context of ancient Israel and are not directly applicable today. However, the underlying principles of compassion and justice remain relevant.

5. What does the Bible say about debt?

The Bible doesn’t explicitly forbid debt, but it warns against its potential dangers. Proverbs 22:7 states, “The rich rule over the poor, and the borrower is slave to the lender.” This suggests that debt can lead to a loss of freedom and autonomy.

6. Is it biblical to invest money in the stock market?

The Bible doesn’t specifically address the stock market. However, the parable of the talents encourages responsible stewardship and using resources wisely, which some interpret as allowing for investment.

7. How should Christians think about borrowing money for a house or education?

These decisions should be made with careful consideration and prayer. It’s important to weigh the potential benefits against the risks of taking on debt and to seek wise counsel.

8. What is the biblical perspective on bankruptcy?

Bankruptcy is not explicitly addressed in the Bible. However, the principles of honesty, integrity, and responsibility suggest that individuals should strive to fulfill their financial obligations.

9. Does the Bible say anything about credit cards?

No, the Bible doesn’t mention credit cards specifically, as they didn’t exist in biblical times. However, the principles of responsible spending, avoiding debt, and being honest in financial dealings are relevant.

10. What should Christians do if they are struggling with debt?

Christians struggling with debt should seek help from trusted financial advisors, debt counselors, and their church community. Prayer and wise financial planning are essential.

11. How does the concept of “stewardship” relate to money lending?

Stewardship emphasizes responsible management of resources entrusted to us by God. This includes using money wisely, avoiding unnecessary debt, and being generous to those in need. Regarding lending, it means ensuring that any lending practices are fair, ethical, and do not exploit the vulnerable.

12. What are some practical ways to apply biblical principles to money lending in today’s world?

Practical applications include offering interest-free loans to those in genuine need, supporting micro-lending initiatives that empower the poor, and advocating for just lending practices that protect consumers from predatory lending. It also means prioritizing generosity and charitable giving over accumulating wealth for oneself.