The Bible And Interest: Sin Or Not?

The Bible has been interpreted in various ways to answer the question of whether charging interest is a sin. The Old Testament contains several passages that can be interpreted as forbidding the practice of charging interest, especially to those in need. Christians are, however, not bound by Mosaic Law, and the Bible also contains passages that suggest earning interest is acceptable. Over time, the interpretation of usury has become more precise, and the modern consensus is that it is the exploitative nature of lending that is the sin, rather than the charging of interest per se.

Christians are not under Mosaic Law, so are free to charge interest

It is clear that the charging of interest, or usury, was forbidden under the Mosaic Law as found in the Old Testament. Leviticus 25:35-37 states, "If your fellow Israelite becomes poor and cannot maintain himself among you, you must support him as you would a foreigner and stranger, so he can continue to live among you. Do not take interest or any profit from him, but fear your God, so that your fellow Israelite may continue to live among you. You must not lend him your money at interest or sell him food at a profit." However, it is important to understand that Christians are not under the Mosaic Law but under grace through faith in Jesus Christ.

The New Testament makes it clear that Christians are not bound by the Mosaic Law but are under a new covenant. In Galatians 3:24-25, Paul writes, "So the law was our guardian until Christ came that we might be justified by faith. Now that this faith has come, we are no longer under a guardian." And in Ephesians 2:8-9, Paul emphasizes that salvation is by grace through faith, not by works of the law: "For it is by grace you have been saved, through faith—and this is not from yourselves, it is the gift of God—not by works, so that no one can boast."

This does not mean that the moral principles of the Old Testament no longer apply to Christians. The Ten Commandments, for example, are still relevant and provide a foundation for moral behavior. However, the ceremonial and civil laws of the Old Testament, including the prohibition on charging interest, are not binding on Christians. Jesus fulfilled the law, and through his death and resurrection, we are now under a new covenant.

In the New Testament, there is no explicit prohibition against charging interest. In fact, the Parable of the Talents in Matthew 25:14-30 suggests that investing money and expecting a return is prudent and commendable. In this parable, a master entrusts his servants with different amounts of money, and the servants who invest the money and gain a return are praised, while the servant who buries the money and does not use it productively is condemned. This indicates that using money wisely and expecting a return on investments is not inherently sinful.

Therefore, Christians are not restricted by the Mosaic Law's prohibition on interest and are free to charge interest within the bounds of ethical and responsible financial practices. This freedom, however, does not give license to exploit or oppress the poor through excessive or unfair interest rates. Christians are still called to love their neighbors, act with compassion, and conduct their financial dealings with integrity and fairness.

The Bible says Christians are under the Law of Christ, which doesn't restrict charging interest

The Bible says that Christians are under the Law of Christ, which does not restrict charging interest. Christians are not under the Mosaic Law, which was given by God to Israel alone as part of their Mosaic Covenant. The Bible states that Christians are under the Law of Christ (1 Corinthians 9:21; Galatians 6:2), and this law does not place restrictions on charging or receiving interest. Therefore, Christians have the freedom to earn interest and charge others interest.

In the Mosaic Law, there are restrictions on charging interest to those in need within the Israelite community. According to Leviticus 25:37, "You shall not lend [your brother] your money at interest." Similarly, Exodus 22:25 states, "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." These passages indicate that lending to those in need within the community should be done out of charity rather than for financial gain.

However, the Bible makes a distinction between loans of subsistence and loans of capital. Loans of subsistence were given to those who were destitute and poor, and it was considered sinful to charge interest on such loans. On the other hand, loans of capital, or business ventures and investment risks, were viewed differently. There is evidence that the clergy provided a type of banking service and charged interest on these types of loans.

Over time, Christians became more careful in defining usury, which was seen as exploiting someone in dire straits rather than simply charging interest. This distinction allowed for charging interest on loans that involved labor, cost, or risk for the lender.

While Christians are not bound by the restrictions on charging interest found in the Mosaic Law, they are called to be generous and compassionate towards their poorer brothers and sisters in Christ. Lending to those in need should be done with sensitivity and a willingness to help, rather than solely for financial gain.

Christians should be generous to their poorer brothers and sisters in Christ

Christians are called to be generous to their poorer brothers and sisters in Christ. While Christians are not under the Mosaic Law, which restricts Jews from charging interest on loans to other Jews, Christians are called to be compassionate and sensitive when loaning money to people in need. This is especially true when lending to fellow Christians.

The Bible teaches that Christians should be generous and compassionate towards those in need. In James 2:1-13, James tells Christians to fulfil the "royal law", which is to love their neighbour as they love themselves (James 2:8). By doing so, Christians are fulfilling the law of liberty, or the Law of Christ, which places no restrictions on charging or receiving interest (James 2:12). This means that Christians should speak and act as those who will be judged by the law of liberty, showing mercy to their brothers and sisters in Christ (James 2:12-13).

In the Parable of the Good Samaritan, Jesus teaches that anyone who needs help is our neighbour, and Christians are called to love their neighbour as themselves (Luke 10:30-37). The Samaritan in the parable gives whatever is needed to care for the injured man, and this is an example of loving our neighbour as ourselves. Likewise, when lending money to someone in need, Christians should seek to help them as they would want to be helped if they were in the same situation.

While there is no prohibition in Scripture against charging interest, Christians should demonstrate charity and love towards others, especially fellow believers. This may involve loaning money with low or no interest, or even making the loan a gift with no expectation of repayment. By choosing to serve the needs of others above themselves, Christians can demonstrate the love of Christ and bring glory to God.

Christians are called to be generous and compassionate towards those in need, especially fellow believers. This may involve making sacrifices and putting the needs of others before their own. In doing so, Christians can demonstrate the love of Christ and bring glory to God.

Lending practices must not take advantage of vulnerable people or make them destitute

The Bible contains several passages that speak to the issue of lending money and charging interest. While Christians are not under the Mosaic Law, which includes specific instructions about lending practices, there are still important principles to be considered when it comes to this topic.

One key principle is that lending practices should not take advantage of vulnerable people or make them destitute. This is reflected in passages such as Exodus 22:25, which says, "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," and Leviticus 25:35-36, which instructs, "If a countryman of yours becomes poor and his means with regard to you falter, then you are to sustain him, like a stranger or a sojourner, that he may live with you. Do not take usurious interest from him, but revere your God, that your countryman may live with you."

These passages indicate that while lending money is not inherently wrong, it should be done with compassion and sensitivity, especially when dealing with those who are already in a difficult financial situation. Charging excessive interest rates or taking advantage of someone's vulnerability is expressly forbidden by these biblical principles.

Another important consideration is the distinction between lending to those within the Israelite community and lending to foreigners. Deuteronomy 23:19-20 states, "You shall not charge interest to your countrymen: interest on money, food, or anything that may be loaned at interest. You may charge interest to a foreigner, but to your countrymen you shall not charge interest, so that the Lord your God may bless you in all that you undertake in the land which you are about to enter to possess." This distinction highlights the importance of caring for one's own community and not exploiting fellow Israelites through excessive interest rates.

While Christians today are not bound by the specific laws and restrictions of the Mosaic Law, the underlying principles of compassion, fairness, and care for the vulnerable still apply. Lending practices should not take advantage of those in need or push them further into poverty. Instead, Christians are called to demonstrate generosity and mercy, reflecting the love of Christ, as seen in the parable of the Good Samaritan.

In conclusion, when it comes to lending practices and interest rates, Christians must be mindful of the biblical principles that call for stewardship, care, and respect. Exploiting vulnerable individuals or making them destitute through excessive interest rates is contrary to the teachings of the Bible. While lending money is not inherently wrong, it should be done with sensitivity and a desire to help, rather than enrich oneself at the expense of others.

The Bible prohibits collateral being taken from the poor

> 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.

Similarly, in Leviticus, the Bible says:

> Now in case a countryman of yours becomes poor and his means with regard to you falter, then you are to sustain him, like a stranger or a sojourner, that he may live with you. Do not take usurious interest from him, but revere your God, that your countryman may live with you.

In Deuteronomy, the Bible also says:

> You shall not charge interest to your countrymen: interest on money, food, or anything that may be loaned at interest. You may charge interest to a foreigner, but to your countrymen you shall not charge interest, so that the Lord your God may bless you in all that you undertake in the land which you are about to enter to possess.

These passages indicate that it is a sin to charge interest on loans to those who are already poor and destitute. The Bible encourages lending to those in need without the expectation of profit. In Luke, the New Testament teaches:

> 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, expecting nothing in return. Then your reward will be great, and you will be sons of the Most High; for He is kind to the ungrateful and wicked. Be merciful, just as your Father is merciful.

While Christians are not bound by Mosaic Law, they are called to be generous to their poorer brothers and sisters in Christ and to demonstrate charity and love.

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