Interest
The Concept of Interest in the Ancient World
The concept of charging interest on loans was well established in the ancient Near East long before the time of Moses. In biblical usage, the Hebrew word most commonly associated with interest literally conveys the idea of "biting" — something taken from the borrower that diminishes what they have. Another Hebrew term emphasizes the act of lending at interest itself, while the Greek word used in the New Testament carries the sense of something "produced" or "begotten" by money.
In the ancient world, all interest was essentially considered usury. There was no modern distinction between a reasonable rate and an exploitative one. The biblical writers addressed this practice head-on, recognizing that lending could either serve as a tool of compassion or an instrument of oppression.
Old Testament Laws on Lending
The Law of Moses established clear restrictions on charging interest among the Israelites. Exodus 22:25 explicitly prohibited lending at interest to the poor. Leviticus 25:36-37 expanded this prohibition, commanding that no Israelite should take interest or profit from a fellow countryman who had fallen into poverty. The underlying principle was simple: in a community bound together by covenant, the strong should support the weak, not exploit their misfortune.
Deuteronomy 23:19-20 introduced a distinction between lending to fellow Israelites and lending to foreigners. While interest could be charged to a foreigner, it was strictly forbidden among brothers within the covenant community. This was not ethnic favoritism but reflected the covenant obligations that bound Israel together as a family under God.
Prophetic Warnings Against Exploitation
The prophets frequently condemned the abuse of lending practices. Ezekiel listed the charging of interest among serious sins (Ezekiel 18:8, 13, 17) and held up the ideal of a righteous person as one who does not lend at interest (Ezekiel 22:12). The prophet treated economic exploitation as a fundamental breach of covenant faithfulness.
Nehemiah encountered a crisis where wealthy Jews were charging heavy interest to their poorer countrymen, forcing families into debt slavery (Nehemiah 5:7, 10). Nehemiah condemned this practice and pointed to his own example of lending without interest, successfully persuading the wealthy to restore what they had taken.
The Psalms also reflect this ethical framework. Psalm 15:5 includes among the marks of a righteous person one who "does not lend money at interest" to the poor.
Interest in the New Testament
Jesus addressed the concept of interest in two parables. In the Parable of the Talents (Matthew 25:27) and the Parable of the Pounds (Luke 19:23), masters rebuke servants for failing to put money to work with bankers where it would have earned interest. These parables do not function as economic treatises but use the common practice of banking to illustrate the importance of faithful stewardship of what God has entrusted to each person.
The New Testament shift is notable. While the Old Testament focused on protecting the vulnerable from predatory lending within the covenant community, Jesus used the concept of financial investment as a metaphor for spiritual responsibility and accountability.
Principles for Understanding Biblical Interest
The biblical teaching on interest reveals several enduring principles. First, God cares deeply about economic relationships and how the powerful treat the vulnerable. Second, the community of faith bears special obligations to its members in times of need. Third, money and possessions are ultimately tools for serving God's purposes, not ends in themselves.
The tension between the Old Testament prohibition and the New Testament parables is resolved by understanding the context: the law targeted exploitation of the poor, while the parables addressed the lazy failure to be productive with entrusted resources. Both point to the same truth — that God calls His people to use their resources wisely and compassionately.
Biblical Context
Interest and lending are addressed across multiple sections of Scripture. The Torah contains specific legal prohibitions in Exodus, Leviticus, and Deuteronomy. The Psalms and Proverbs offer wisdom on righteous lending. The prophets Ezekiel, Isaiah, and Jeremiah condemn exploitative interest. Nehemiah records a historical crisis over lending practices. In the New Testament, Jesus references interest in parables about stewardship in Matthew and Luke.
Theological Significance
The biblical teaching on interest reveals God's deep concern for economic justice and the protection of the vulnerable. It demonstrates that covenant faithfulness extends into financial relationships. The prohibition against charging interest to the poor reflects God's character as defender of the weak, while the New Testament parables emphasize faithful stewardship of God-given resources. Together, these teachings show that how we handle money is a spiritual matter with eternal significance.
Historical Background
Interest-bearing loans were common throughout the ancient Near East. The Code of Hammurabi in Babylon regulated lending with interest rates typically around 20 percent, though rates of 11 to 18 percent are also attested in contract tablets. Commodities like grain, dates, and onions were also loaned at interest. Egypt likewise had established lending practices. Israel's laws stood in sharp contrast to surrounding cultures by prohibiting interest within the covenant community, reflecting a fundamentally different view of economic relationships rooted in communal obligation rather than pure commerce.