Whether charging interest on a loan is a sin depends heavily on religious tradition and context, with many interpretations viewing excessive interest (usury) as exploitative and sinful, especially when preying on the poor, while some consider reasonable business interest acceptable or even necessary in modern finance, though Islamic law strictly forbids all interest (riba). The core concern across traditions is exploitation, with Old Testament rules prohibiting interest on loans to fellow Israelites but allowing it with foreigners, leading to modern distinctions between aiding the needy (no interest) and business ventures (potentially okay).
The Biblical Foundation
Scripture is clear on this point: God's people are to avoid charging interest to one another. Exodus 22:25 – “If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest.”
Key takeaways. Usury laws set limits on the amount of interest lenders can charge on loans and are typically set at the state level. There is no federally mandated maximum interest rate for credit cards. For credit cards, the CARD Act offers various protections and provides more transparency regarding rates.
Biblical prohibitions on usury were later redefined as prohibitions on lending at excessive interest rates. Today, charging interest on loans is an everyday part of life. Modern Christian leaders condemn excessive interest rates, but not the lending of money itself.
Exodus 22:14 - If anything is borrowed, it should be paid back. If what is borrowed is lost or injured, full restitution must be made. Ps 37:21 - The wicked borrows but does not pay back, but the righteous is generous and gives. The Bible is clear that when something is borrowed is should be paid back.
Bible. The Old Testament "condemns the practice of charging interest on a poor person because a loan should be an act of compassion and taking care of one's neighbor"; it teaches that "making a profit off a loan from a poor person is exploiting that person (Exodus 22:25–27)."
Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” If you owe someone money, they'll control your life until you pay it back.
Interest is deemed riba, or an unjust, exploitative gain, and such practice is forbidden under Islamic law. In Islamic finance, riba refers to interest charged on loans or deposits. Religious practice forbids riba, even at low interest rates, as both illegal and unethical or usurious.
The Bible does not prohibit borrowing. However, it has strong words of caution. “The rich rule over the poor, and the borrower is slave to the lender” (Proverbs 22:7). And there's this: “God paid a high price for you, don't be enslaved to the world” (1 Corinthians 7:23, NLT).
The answer is not clear. On the one hand, the Old Testament condemns the practice of charging interest because a loan should be an act of compassion and taking care of one's neighbor. As such, making a profit off a loan is exploiting that person and dishonoring God's covenant (Exodus 22:25–27).
Proverbs 14:23 says, "All hard work brings a profit, but mere talk leads only to poverty" (NIV), emphasizing that diligent effort yields rewards, while empty words or discussions about goals without action only lead to lack and failure, urging people to focus on productive work rather than just talking about what they want to achieve.
Luke 6:34-35
Here we have Jesus saying, “lend, expecting noth- ing in return,” again to the crowds as well as to Jesus' disciples (Lk 17, 7:1). Garland (2011) suggests that Jesus says this because his teaching reaffirms the essence of the Old Testament prohibition against interest.
There's no single #1 worst sin; it depends on the religious or moral framework, but pride is often called the root of all evil (Christianity/Islam), while the blasphemy against the Holy Spirit (unforgivable sin) is considered the gravest in the Bible. Other severe sins include child abuse (Catholicism) and sins that "cry to Heaven" (like shedding innocent blood or oppressing the poor).
For the most part, Christians have concluded that interest is not inherently prohibited in modern societies, but that lending practices— including interest rates and collateral—must not take advantage of vulnerable people or make people destitute.
A set of Islamic principles—based on the goal of providing economic justice for all—prohibits Muslims from paying or receiving interest during financial transactions. Some Jewish and Christian groups face a similar prohibition.
Yes, Proverbs 22:6 ("Train up a child in the way he should go, and when he is old he will not depart from it") functions strongly as a warning against permissive parenting and indulging a child's selfish ways, indicating that letting them have their own way (their "way") leads to sticking to that path into adulthood, rather than a promise that dedicated godly training guarantees a perfect outcome. It highlights the formative power of early guidance, suggesting that if you train them in their natural, often foolish, way, that's what sticks, but if you start them on God's way, it's harder to leave.
God clearly warns us not to go into debt or cosign a loan unless we are certain we can repay our obligation (Proverbs 22:26-27). You must conclude then that some debt is allowed. You can owe money to other people and not be in sin. However, debt carries a responsibility - you must repay your debts.
Deuteronomy 15:8 says, “You shall open your hand to him and lend him sufficient for his need, whatever it may be.” Turning to the New Testament, in the Sermon on the Mount, Matthew 5:42, Jesus says, “Give to the one who asks you, and do not turn away from the one who wants to borrow from you.”