Is Loaning Money Biblically Encouraged—or Discouraged?

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When you hear the phrase “Can I borrow some money?”—what’s the first thing that comes to mind? For some, it stirs compassion; for others, it raises hesitation. Loaning money is not just a practical issue of finances; it is also a spiritual matter, one that Scripture addresses with surprising depth.
The Bible does not shy away from this subject—it presents both encouragements and cautions, urging believers to approach lending with wisdom, generosity, and righteousness.
The Old Testament sets the stage by highlighting God’s heart for generosity. In Deuteronomy 15:7–8, the Israelites are commanded: “If there is a poor man among your brothers… do not be hardhearted or tightfisted toward your poor brother. Rather be openhanded and freely lend him whatever he needs.” Here, lending is not discouraged but rather framed as an act of compassion. God’s people are called to imitate His generosity, showing mercy to the needy without expecting gain.
This principle aligns with Psalm 37:26, which describes the righteous as those who are “always generous and lend freely; their children will be blessed.” Lending in this sense becomes a visible fruit of a godly character. It is not primarily about financial return, but about extending God’s grace to others in tangible ways.
Yet Scripture also issues clear warnings. Loaning money for selfish gain or at the expense of others is firmly rebuked. In Exodus 22:25, God instructs Israel: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.” Similarly, Proverbs 28:8 cautions against profiting unjustly from loans, reminding us that wealth gained through exploitation will ultimately be given to those who are kind to the poor.
The New Testament echoes this heart posture. Jesus Himself said in Luke 6:34–35: “And if you lend to those from whom you expect repayment, what credit is that to you? Even sinners lend to sinners, expecting to be repaid in full. But love your enemies, do good to them, and lend to them without expecting to get anything back.” Here, lending is elevated beyond mere economics into an expression of radical love.
So, is loaning money biblically encouraged—or discouraged? The answer lies in the motivation. The Bible encourages lending when it flows from mercy and generosity, but it discourages it when tied to greed, manipulation, or profit at the expense of the vulnerable.
In practical terms, Christians are urged to lend with open hands and discerning hearts. Sometimes, this may even mean giving instead of lending, to avoid burdening the borrower with debt. As Proverbs 19:17 reminds us, “Whoever is kind to the poor lends to the Lord, and He will reward them for what they have done.”
Ultimately, the biblical vision of lending is not about financial transactions—it’s about reflecting the character of God. He has graciously given us more than we deserve, and in turn, we are called to extend generosity to others. Whether through a loan or a gift, the Christian’s aim is clear: to honor God, help the needy, and live out the love of Christ in everyday life.
*Cover Photo/Thumbnail Photo from bibleart.com
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