God's Condemnation of Excessive Interest Rates in Scripture
The Old Testament law prohibits the charging of interest on loans made to fellow Israelites, particularly those in need [2, 5]. This prohibition is rooted in the agricultural nature of ancient Israelite society, where loans were typically sought out of necessity rather than for commercial ventures [2]. Key passages such as Exodus 22:25, Leviticus 25:35-37, and Deuteronomy 23:19-20 outline these regulations [1, 5].
Exodus 22:25 states, "If you lend money to any of my people with you who is poor, you shall not be to him as a moneylender, and you shall not exact interest from him" [5]. Similarly, Leviticus 25:35-37 instructs, "If your brother becomes poor and cannot maintain himself with you, you shall support him... 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" [5]. Deuteronomy 23:19-20 reiterates this, forbidding interest from a "brother" but permitting it from a "foreigner" [1, 2].
The rationale behind these laws was to prevent the exploitation of the poor and vulnerable within the community [5, 6]. Lending money with interest to those in need was seen as an abuse of their difficult circumstances [6]. Nehemiah 5:6-13 provides an example of this principle in action, where Nehemiah demanded that wealthy lenders restore fields and repay interest that had been unlawfully collected from their fellow Israelites [1, 7]. Even a relatively low interest rate was considered a violation of God's covenant in such cases [7].
The Psalms and Proverbs also reflect this ethical stance. Psalm 15:5 describes a righteous person as one who "does not put out his money at interest" [9]. Proverbs 28:8 notes that "whoever multiplies his wealth by interest and profit gathers it for him who is generous to the poor" [8]. The law encouraged generosity towards the poor, rather than profiting from their hardship [8].
While the Mosaic Law permitted taking interest from foreigners, the primary concern was the protection of the Israelite community from economic oppression [2, 3]. The New Testament further develops this principle, with Jesus instructing his followers to lend "without expecting to be repaid," thereby imitating God's kindness to all people [5]. The condemnation of excessive interest rates, or usury, in Scripture is thus fundamentally tied to principles of justice, compassion, and the avoidance of exploiting those in need [4, 5].
Sources
- Torrey's Topical Textbook “Torrey's Topical Textbook: Usury or Interest — The lending of money or other property for increase -- Le 25:37. Those enriched by unlawful, not allowed to enjoy their gain -- Ps 28:8. The curse attending the giving or receiving of unlawful, alluded to -- Jer 15:10. The Jews Forbidden to take, from brethren. -- De 23:19. Forbidden to take, from brethren specially when poor. -- Ex 22:25; Le 25:35-37. Often guilty of taking. -- Ne 5:6,7; Eze 22:12. Required to restore. -- Ne 5:9-13. Allowed to take, from strangers. -- De 23:20. True and faithful Israelites never took, from their brethren -- Ps 15”
- Smith's Bible Dictionary “Smith's Bible Dictionary: Usury — (The word usury has come in modern English to mean excessive interest upon money loaned, either formally illegal or at least oppressive. In the Scriptures, however the word did not bear this sense, but meant simply interest of any kind upon money. The Jews were forbidden by the law of Moses to take interest from their brethren, but were permitted to take it from foreigners. The prohibition grew out of the agricultural status of the people, in which ordinary business loans were not needed. and loans as were required should be made only as to friends and brother”
- Smith's Bible Dictionary “Smith's Bible Dictionary: Loan — The law strictly forbade any interest to be taken for a loan to any poor person, and at first, as it seems, even in the case of a foreigner; but this prohibition was afterward limited to Hebrews only, from whom, of whatever rank, not only was no usury on any pretence to be exacted, but relief to the poor by way of loan was enjoined, and excuses for evading this duty were forbidden. (Exodus 22:25; Leviticus 25:35,37) As commerce increased, the practice of usury, and so also of suretyship, grew up; but the exaction of it from a Hebrew appears to have been regarde”
- Isaiah “Isaiah 61:8 (Geneva1599) — For I the Lord loue iudgement and hate robberie for burnt offering, and I wil direct their worke in trueth, and will make an euerlasting couenant with them.”
- Luke (Protestant academic) “Tyndale House on Luke 6:34: 6:34-36 The law of Moses prohibited charging interest on loans to other Israelites in order to prevent exploitation of the poor (Exod 22:25; Lev 25:35-37; Deut 23:20). Jesus further instructed his followers to lend . . . without expecting to be repaid. By doing good even to those who do evil, we act as children of the Most High and imitate our Father in heaven, who is kind to all people (cp. Rom 5:8).”
- Ezekiel (Protestant academic) “Tyndale House on Ezekiel 18:8: 18:8 Lending money with interest to those in need was outlawed because of the temptation it presented to abuse the borrower (see Exod 22:25).”
- Nehemiah (Protestant academic) “Tyndale House on Nehemiah 5:11: 5:11 Nehemiah demanded that the rich lenders restore their fields and repay the interest (literally the hundredth part), which they should not have collected (see also Exod 22:25; Lev 25:35-37). The literal hundredth part suggests that the interest was one percent per month, lower than the twenty percent annual rate found in some documents of that time, or the sixty percent annual rate charged at Elephantine in Egypt. But even a relatively low rate of interest violated God’s covenant.”
- Proverbs (Protestant academic) “Tyndale House on Proverbs 28:8: 28:8 The law prohibited charging needy Israelites interest on loans (Exod 22:25; Lev 25:36; Deut 23:19). The rich were instructed to lend generously to the poor (Prov 3:27-28; 11:24; 28:27; 29:7, 14).”
- Psalms (Protestant academic) “Tyndale House on Psalms 15:5: 15:5 The Lord prohibited Israel from charging interest to people in need (Exod 22:25-27). • The assurance of God’s presence keeps the godly from destruction (Pss 16:8; 46:5; 125:1). Their circumstances might shake them temporarily, but they ultimately stand firm (30:6; 94:18; 112:6).”