Loans in the Old Testament Bible

The Mosaic law required that when an Israelite needed to borrow, what he asked was to be freely lent to him, and no interest was to be charged, although interest might be taken of a foreigner (Exodus 22:25; Deuteronomy 23:19-20; Leviticus 25:35-38).

At the end of 7 years, all debts were cancelled. However, if the debtor was a foreigner the debt was still in effect—payment was still required.

At a later period of the Hebrew commonwealth, when commerce increased, the practice of exacting usury or interest on loans, and of suretiship in the commercial sense, grew up. Yet, the exaction of it from a Hebrew was regarded as discreditable (Psalm 15:5; Proverbs 6:1, 4; 11:15; 17:18; 20:16; 27:13; Jeremiah 15:10).

Limitations are prescribed by the law to the taking of a pledge from the borrower. The outer garment in which a man slept at night, if taken in pledge, was to be returned before sunset (Exodus 22:26-27; Deuteronomy 24:12-13). A widow’s garment (Deuteronomy 24:17) and a millstone (6) could not be taken. A creditor could not enter the house to reclaim a pledge, but must remain outside till the borrower brought it (10-11).

The Hebrew debtor could not be retained in bondage longer than the 7th year, or at farthest the year of jubilee (Exodus 21:2; Leviticus 25:39, 42), but foreign sojourners were to be “bondmen for ever” until the debt was paid (Leviticus 25:44-54).

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Article Version: September 9, 2017