The Bible has a lot to say about money and possessions, including lending money to others. Here is an overview of some of the key biblical principles regarding lending money:
Lending to the Poor
The Bible encourages lending to the poor and needy as an act of compassion and charity. Passages like Exodus 22:25, Leviticus 25:35-37, Deuteronomy 15:7-11, Psalm 112:5, and Proverbs 19:17 speak of God’s care for the poor and the importance of meeting their needs.
Lending without interest to the poor is seen as a praiseworthy act. As Proverbs 19:17 states, “Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.”
Lending to Family and Friends
Lending money to family or friends in need is generally depicted positively in the Bible. For example, giving an interest-free loan to a relative who has fallen into poverty could help them get back on their feet (Leviticus 25:35-37).
However, boundaries are still important when lending to loved ones. The lender should be careful not to enable irresponsible behavior and should establish clear expectations about repayment (Proverbs 22:26-27).
Lending at Interest
Most passages that mention lending at interest condemn the practice as sinful and exploitative. Taking interest or making a profit from lending to fellow Israelites was forbidden in the Mosaic law (Exodus 22:25, Leviticus 25:36-37). This prohibition on interest was based on God’s desire for economic justice and compassion for the poor.
However, the Bible does appear to permit lending at interest to non-Israelites, probably as an accommodation to the realities of ancient commerce and trade (Deuteronomy 23:19-20). But excessive interest charges were discouraged (Ezekiel 18:8,13).
Unjust Gain from Lending
While lending itself is not condemned, Scripture denounces those who lend money or resources in order to take unfair advantage of others. Ezekiel 18:13 describes this as a “sinful practice” and Micah 2:2 condemns those who covet fields and seize them by fraud.
The Bible often criticizes unjust gain made from lending, where repayment terms are harsh and designed to trap borrowers in poverty. Nehemiah called for the cancellation of debts when he learned people were charging interest from poor fellow Jews (Nehemiah 5:1-13).
Generosity Encouraged
Scripture encourages generosity and warns against stinginess, even in lending. Christians should lend to others in response to genuine needs, not as a way of making money. As Luke 6:35 states, “love your enemies, do good, and lend, expecting nothing in return.”
The Bible exhorts lenders to show grace and flexibility in repayment when borrowers encounter hardship. The Old Testament advocated for “release” of debts every seven years and the return of property that had been given as collateral for loans (Deuteronomy 15:1-6).
Good Stewardship
While lending is encouraged in many cases, the Bible also teaches good stewardship of one’s resources. Christians should balance prudent saving and spending with generous giving and lending (Proverbs 21:20, Luke 14:28). If lending would severely compromise one’s own family’s welfare, it may not be wise (Proverbs 22:7).
Avoid Co-Signing
Co-signing a loan or going surety puts you on the hook if the primary borrower defaults. Proverbs warns strongly against making these risky commitments that could jeopardize your financial position (Proverbs 6:1-5, 11:15, 17:18, 20:16, 22:26-27, 27:13).
Do Not Withhold Repayment
Borrowers are strongly exhorted to pay back what they owe in a timely fashion. Psalm 37:21 says, “The wicked borrows but does not pay back.” Failing to repay a loan is considered wicked, foolish behavior in Scripture.
Cautions About Debt
While the Bible does not prohibit borrowing and lending entirely, it does contain warnings about the dangers of debt. Getting into excessive debt through consumer spending or uncontrolled borrowing can lead to poverty and slavery to creditors (Proverbs 22:7).
Debt should be taken on cautiously and repaid quickly if possible. The borrower should not delay making payments or fail to fulfill obligations to the lender (Psalm 37:21).
Forgiveness
For lenders, extending grace and forgiveness is better than strictly enforcing debts that borrowers cannot repay. Jesus told a parable commending a servant who forgave the debt of a man who could not pay (Matthew 18:23-35).
For borrowers, Scripture encourages repentance and responsibility in borrowing. But it also teaches that God is gracious and will forgive our debts to Him, inspiring us to show patience and forgiveness to others (Colossians 3:12-13).
In summary, the Bible contains timeless financial principles relevant to lending and borrowing today. Lending to help the poor is noble, but exploiting others through unfair interest is wrong. Borrowing can facilitate important purchases but debt needs to be managed wisely. Finally, showing generosity and grace should undergird lending and borrowing between brothers and sisters in Christ.
Some key Bible verses about lending money include:
- Exodus 22:25 – “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 – “If your brother becomes poor and cannot maintain himself with you, you shall support him as though he were a stranger and a sojourner, and he shall live with you. Take no interest from him or profit, but fear your God, that your brother may live beside you. You shall not lend him your money at interest, nor give him your food for profit.”
- Deuteronomy 15:7-11 – “If among you, one of your brothers should become poor, in any of your towns within your land that the Lord your God is giving you, you shall not harden your heart or shut your hand against your poor brother, but you shall open your hand to him and lend him sufficient for his need, whatever it may be…For there will never cease to be poor in the land. Therefore I command you, ‘You shall open wide your hand to your brother, to the needy and to the poor, in your land.’”
- Psalm 112:5 – “It is well with the man who deals generously and lends; who conducts his affairs with justice.”
- Proverbs 19:17 – “Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.”
- Ezekiel 18:8 – “Does not lend at interest or take any profit, withholds his hand from injustice, executes true justice between man and man.”
- Matthew 5:42 – “Give to the one who begs from you, and do not refuse the one who would borrow from you.”
- Luke 6:35 – “But love your enemies, and do good, and lend, expecting nothing in return, and your reward will be great, and you will be sons of the Most High, for he is kind to the ungrateful and the evil.”
- Romans 13:8 – “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.”
In conclusion, Scripture provides wisdom and warnings for both lenders and borrowers. Christians are called to manage money responsibly but also generously, looking out for the interests of others above their own. The principles of caring for the poor, avoiding exploitation, practicing good stewardship, forgiving debts, and showing love and grace should all inform believers today as they navigate lending money and borrowing.