What does the Bible say about lending money?

This word does not in scripture signify, as now, undue interest, but simply interest of any kind. The Israelites were forbidden to require interest from their brethren, always supposing the person having the loan to be poor, otherwise he would not need to borrow; to strangers, however, they were allowed to lend on interest. Ex. 22:25; Lev. 25:35-38; Deut. 23:19-20. On the return of the Jews, Nehemiah sharply rebuked the nobles and the rulers for taking interest of their poorer brethren. Neh. 5:3-13. Scripture strictly enjoins the rich to help the poor. The only mention of usury in the N.T. is in the parables of the Talents and the Pounds, where the master blamed the servant for not putting the gifts into use, so that he might have received his own with interest, or increase. Matt. 25:27; Luke 19:23.

If one loaned money to another Israelite who was poor, no interest was to be charged (v. 25). If there were no question of poverty involved, the situation would be different, of course, for one may borrow money in order to promote a business venture, though he himself is not in need at all.

If a borrower were to give his garment as security, the lender must not keep it even overnight. My righteous demands must in no way take precedence over proper compassion (vv. 26-27).

LENDING WITHOUT INTEREST (vv. 35-38)

In cases of poverty in Israel, neighbors were to be of help, lending money, but not charging interest (vv. 36-37). Jews were not forbidden to take interest from foreigners (Deut. 23:20), but were to charge nothing when dealing with their own people. This is surely a good lesson for us too. If one requires help because of poverty, it is unseemly that we should charge him interest. Dealing on the basis of business is a different matter. Still better than lending to those in poverty is the grace of giving to them, as 2 Corinthians 9:7 assures us.

In lending money or goods to a brother Israelite, the Jews were not allowed to charge interest (v.19). Christians too should consider it wise not to charge interest to another Christian or to a close relative if lending to them because of an occasion of need. Business practices such as mortgages are of a different character, of course, but the Lord takes account of the unselfish treatment we show toward others, and will repay this in His own way (v.20).

"And there arose a great cry of the people and of their wives against their brethren the Jews. For there were that said, We, our sons and our daughters, [are] many: let us get corn, that we may eat and live. There were also that said, We are mortgaging our fields, and our vineyards, and our houses: let us get corn, because of the dearth. There were also that said, We have borrowed money for the king's tribute [upon] our fields and our vineyards. Yet now our flesh [is] as the flesh of our brethren, our children as their children: and, lo, we bring into bondage our sons and our daughters to be servants, and [some] of our daughters are brought into bondage [already]: neither is it in our power [to help it]; for other men have our fields and our vineyards. And I was very angry when I heard their cry and these words. Then I consulted with myself, and contended with the nobles and the rulers, and said unto them, Ye exact usury, every one of his brother. And I held a great assembly against them" (vers. 1-7).

Usury was forbidden among the Israelites one with another, not as a thing in itself wrong, but as inconsistent with their exceptional standing and their relation as brethren after the flesh. They were at liberty to lend at interest to Gentiles, not to Jews; and if a Jew sold himself into servitude, at the seventh year he was set free, as land reverted to its true tenant at the jubilee. So did the law check and regulate a failing people on Jehovah's behalf. Alas! self governed the nobles and rulers in the land. And Nehemiah proved his moral courage as well as faith and love in detestation of their misconduct. He conferred not with flesh and blood. "I consulted with myself" is his remarkable language and made his remonstrance with themselves. He also set a great assembly against them.

"And I said unto them, We after our ability have redeemed our brethren the Jews, which were sold unto the heathen; and would ye even sell your brethren, and should they be sold unto us? Then held they their peace, and found never a word. Also I said, The thing that ye do [is] not good: ought ye not to walk in the fear of our God, because of the reproach of the heathen our enemies? And I likewise, my brethren and my servants, might lend them money and corn on usury. I pray you, let us leave off this usury. Restore, I pray you, to them even this day their fields, their vineyards, their oliveyards, and their houses, also the hundredth [part] of the money, and of the corn, the wine, and the oil, that ye exact of them. Then said they, We will restore them, and will require nothing of them; so will we do, even as thou sayest. Then I called the priests, and took an oath of them, that they should do according to this promise. Also I shook out my lap, and said, So God shake out every man from his house, and from his labour, that performeth not his promise; even thus be he shaken out, and emptied. And all the congregation said, Amen, and praised the Lord. And the people did according to this promise" (vers. 8-13).

The last example shows once more that the Lord Jesus is speaking to the hearts of His disciples: "Give to him that asketh thee, and from him that would borrow of thee turn not thou away." Even under the law the Jew was forbidden to lend anything to his brother upon usury (Lev. 25:35ff; Deut. 23:19); rather, he was to open his hand wide to him (Deut. 15:7-8). The Lord Jesus here makes no restrictions regarding giving and lending. For God, the great Giver, has not spared His own Son, but delivered Him up for us all. He, who with Him, freely gives us all things, loves a cheerful giver (Rom. 8:32; 2 Cor. 9:7).

Genuine love is much more than this, for it has honest care even for enemies, doing good and lending without expectation of receiving anything back (v.35). There are people who would not ask for a gift, but would not hesitate to ask for a loan, though they have little intention of paying it back. It would be wrong for us to encourage dishonesty in anyone, but so far as we ourselves are concerned, it is better for us to suffer wrong than to demand our rights. Faith on our part can leave my such things in the hand of God. If so, our reward will be great, and also in practical life we shall be children of the Highest, rightly representing His character of kindness to all, whether they are thankful or not. The reason for our being merciful is simply that our Father is merciful (v.36).

"Owe no man anything, but to love one another, for he that loveth another hath fulfilled the law." The first sentence does not mean that it is wrong to borrow money. The question is about paying. If a debt is due it should be paid exactly on time. Borrowing money in a reckless way, without any prospect of returning the amount, is sinful, and often great dishonor has been brought upon the name of our Lord on account of it. But there is another debt which always remains. The Christian owes the debt of love to all. And this love is the fulfilling of the law. Love does not work ill to his neighbor. The natural man may claim that he keeps the sum of the other commandments, "Thou shalt love thy neighbor as thyself," but he cannot do it. Only one who is born again, in whose heart there is love, has the power to do this.

To become surety for another is condemned in the Proverbs as being unwise: "he that hateth suretiship is sure." To be surety for a stranger is totally condemned. Prov. 6:1; Prov. 11:15; Prov. 17:18; Prov. 22:26. Many a Christian has suffered by being surety for a friend. It may be difficult to refuse, but it is unrighteousness unless the one who is surety can bear the loss if it should fall upon him.

Verses 8, 9, 10 give us, not simply authorities, but what is due to all men. “Owe no man anything, but to love one another.” This is a debt that can never be fully paid up. Paul's knowledge of the gospel and his love for men made him “debtor both to the Greeks, and to the barbarians, both to the wise, and to the unwise,” and this is the case, in whatever measure, of all saints. But it is very clear that debts in temporal things are to be avoided. “The borrower is servant to the lender” is a truth to be well considered.