Is it permissible for Christians to charge one another interest on loans?
The law condemns usury, particularly to poor brethren: “If you lend money to any of My people who are poor among you, . . . you shall not charge him interest” (Exodus 22:25). On the contrary, generosity is instructed: “But you shall open your hand wide to him and willingly lend him . . . whatever he needs” (Deuteronomy 15:8).
While biblical usury is not just excessive interest, but interest of any kind, verses like these and others (i.e., Leviticus 25:35-37; Deuteronomy 23:19; Matthew 5:42; Luke 6:35-36; 1 Timothy 6:18) have been misinterpreted to conclude that charging interest of any kind is a sin.
The problem with this interpretation is that it takes the word interest out of context. The law’s prohibition of charging interest is almost exclusively tied to the purpose of not oppressing the poor. In biblical times, borrowing had two purposes: first, to relieve the suffering of the destitute and, second, to make more profit in business. There was no prohibition against the latter except among Jews, and they made exceptions for themselves. Everyone would share in the profit, including the investor who loaned for interest. The law, rather, forbade the former. Israel was not to charge interest when the borrower was poor, which basically enslaved them to the loaner.
The Bible is said to have as many as 2,350 verses on how to handle our money and possessions. The basic teaching on this point is clear: Don’t be greedy but be generous, especially where the poor and needy are concerned.
The Bible has been described as a letter from God to people, co-authored by men of God under the inspiration of the Holy Spirit and received by God’s people by that same Holy Spirit (2 Timothy 3:16, 17; 2 Peter 1:19-21). The problem arises when someone determines a doctrine and then looks for biblical support for it, instead of letting the Holy Spirit guide them into understanding the message from God. It is not mystical; there are rules for interpreting the Word of God that one does well to follow. This is true with our understanding of usury too.
By the letter of the law, a biblical phrase may condemn a certain practice. But the one who interprets a text to mean the practice is sin in all cases misinterprets the message of God. Consider Jesus’ words about Sabbath observance related to the work of priests and the behavior of His disciples (Matthew 12:1-5). Consider how Jesus was accused of breaking the Sabbath when He performed miracles. Jesus is Lord of the Sabbath; He honored the law of God (v. 8).
We must learn and obey the spirit of the law. Similar considerations are necessary when considering the sound teaching on usury. Jesus’ parables appear to approve of charging interest on loans (Luke 19:11-27). On the other hand, He drove the money changers from the temple for extorting God’s people for their own gain (vv. 45-48).
For Bible-based believers, the greater weight of teaching on money is on generosity, contentment, forgiveness of debts patterned on God’s forgiveness of us, being wise stewards, and avoiding greed, deceit, and fraud. When Christians lend to each other, we must consider the ability of the borrower to repay the debt. Exorbitant interest rates are always wrong, of course, but it is permissible to receive interest when it is mutually beneficial to both parties.
— Elder Chip Hinds
