The Role of Interest (Usury) in Scripture

What is Interest (Usury)?

In biblical law, usury—charging interest on loans—was explicitly prohibited as a means of protecting the vulnerable, as seen in Exodus 22:25 and Deuteronomy 23:19-20.

Deuteronomy 23:19-20 clarifies that Israelites were forbidden from demanding repayment beyond the principal amount lent to their fellow Israelites, though lending to foreigners allowed interest. This distinction emphasized communal solidarity and economic justice. The practice of usury was viewed as exploitative, particularly toward the poor, who might otherwise face further hardship.

The prohibition reflects a theological commitment to compassion over profit, urging lenders to prioritize the well-being of their neighbors. This principle invites reflection on modern financial ethics and the balance between fairness and economic systems.

The Biblical Prohibition of Interest

Deuteronomy 23:20 explicitly prohibits Israelites from charging interest to their fellow Israelites while permitting it in loans to foreign nations.

The verse states, 'You shall not charge interest on loans to your brother—interest on money, interest on food, interest on anything that is lent for interest.' This law functioned to safeguard the economically vulnerable within Israel’s community, ensuring that financial transactions did not exploit those in need. By forbidding profit from hardship, the law reinforced a covenantal ethic of mutual care over self-interest.

This distinction between neighbor and stranger reflects a broader theological framework prioritizing justice for the poor (Exodus 22:25). Allowing interest in dealings with foreigners acknowledged practical realities while maintaining communal solidarity among Israelites. The structure of these laws invites reflection on how economic systems might balance compassion with practicality in modern contexts.

How to Read Interest (Usury) References Correctly

To interpret biblical usury laws accurately, readers must first recognize their context as social justice mandates within ancient Israel's covenantal framework.

Exodus 22:25 explicitly commands, 'If you lend money to my people, to the poor among you, you shall not charge them interest,' emphasizing protection of the vulnerable. Deuteronomy 23:19-20 reinforces this by prohibiting interest between Israelites but permitting it with foreigners, reflecting both communal solidarity and pragmatic flexibility. These laws reveal a theological priority: economic relationships should mirror God's compassion for the marginalized.

modern readers should approach these texts by distinguishing historical prescriptions from timeless principles, seeking patterns of justice and ethical reciprocity that remain relevant in contemporary financial systems.

Going Deeper

Exploring the broader biblical framework of economic ethics reveals additional principles that complement the laws against usury.

Proverbs 28:8 warns, 'One who increases wealth by interest and profit gathers it for another who is kind to the poor,' highlighting risks of exploitative finance, while Deuteronomy 15:7-8 commands, 'If there is a poor man... do not harden your heart... lend him whatever he needs.' These texts invite reflection on how modern systems might balance fairness, compassion, and practicality in economic relationships.