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[Jud]

Is it biblical to work for a bank or credit card company that charges interest on loans?

[jimwalton]

The Bible doesn't forbid loans, but it does warn of the dangers. What it does forbid is unfair and oppressive interest rates. Any ill-gotten profit is considered to be wrong (Prov. 10.2; 11.18). Deuteronomy 15.1-7 encourages lending to those in need.

Some biblical principles about loans:

1. Being able to lend money is seen as a blessing (Dt. 28.12).

2. The preeminent principle for business was to operate with honesty and integrity (Prov. 10.3; 11.1, 3; 16.11; 20.10).

3. Any interest charged for loans was always supposed to be fair and reasonable, not usurious (Ps. 15.5). In the ancient Near East (Hammurabi), interest could not exceed 20%. In ancient Israel, common interest rates were 20-33%. In the Roman world, interest was sometimes as high as 48%. At Elephantine, interest rates as high as 60% have been found.

4. Israelites were not supposed to charge interest to other Israelites, since they were all under the covenant, but a reasonable pledge (collateral) could be secured (Ex. 22.25-27).

5. It was OK to charge interest to foreigners, but it should still be at a fair rate. Loans to foreigners were allowed but discouraged in case the foreigner defaulted on the loan (Prov. 11.15)

6. If one loaned money to the poor, one should expect never to get it back and consider it charity. If you had that much money and the other person had that little, just give it. (Prov. 11.26; 29.7,14).

7. Every 7th year, all debts were to be forgiven (Lev. 25). God established policies so that there would never be a permanent poverty class in Israel.

8. Any ill-gotten profit was considered to be wrong (Prov. 10.2; 11.18).