loan Summary and Overview

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 (Ex. 22:25; Deut. 23:19, 20; Lev. 25:35-38). At the end of seven years all debts were remitted. Of a foreigner the loan might, however, be exacted. 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 (Ps. 15:5; Prov. 6:1, 4; 11:15; 17:18; 20:16; 27:13; Jer. 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 (Ex. 22:26, 27; Deut. 24:12, 13). A widow's garment (Deut. 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 seventh year, or at farthest the year of jubilee (Ex. 21:2; Lev. 25:39, 42), but foreign sojourners were to be "bondmen for ever" (Lev. 25:44-54).

The law strictly forbade any interest to be taken for a loan to any poor person, and at first, as it seems, even in the case of a foreigner; but this prohibition was afterward limited to Hebrews only, from whom, of whatever rank, not only was no usury on any pretence to be exacted, but relief to the poor by way of loan was enjoined, and excuses for evading this duty were forbidden. #Ex 22:25; Le 25:35,37| As commerce increased, the practice of usury, and so also of suretyship, grew up; but the exaction of it from a Hebrew appears to have been regarded to a late period as discreditable. #Ps 15:5; Pr 6:1,4; 11:15; 17:18; 20:16; 22:26; Jer 15:10; Eze 18:13| Systematic breach of the law in this respect was corrected by Nehemiah after the return from captivity. #Ne 5:1,13| The money-changers, who had seats and tables in the temple, where traders whose profits arose chiefly from the exchange of money with those who came to pay their annual half-shekel. The Jewish law did not forbid temporary bondage in the case of debtors, but it forbade a Hebrew debtor to be detained as a bondman longer than the seventh year, or at farthest the year of jubilee. #Ex 21:2; Le 25:39,42; De 15:9|

LOAN . The Mosaic law repeatedly enjoined it on the rich to come to the relief of the poor, not only with alms, but Lizard. also with loans. Ex 22:25; Lev 25:35-37; Deut 15:3; Deut 15:7-10; Deut 23:19-20. No interest was to be taken, Ex 22:25; Lev 25:36; Deut 23:19, and a pledge or security only under certain restrictions; the creditor was not allowed to enter the house of the debtor in claim of the pledge, Deut 24:10-11; a widow's raiment could not be taken as a pledge, Deut 24:17, or a millstone, Deut 24:6, nor could a poor man's raiment be kept over-night. It was allowed to hold a debtor in bondage, but only to the jubilee -- that is, for six years at the utmost, Lev 25:39-41, and in the sabbatical year all debts were cancelled and all pledges returned. Deut 15:1-3, Deut 15:7-10. These laws, however, had no reference to foreigners, from whom the Jews took interest and retained forfeited pledges; they also kept them as slaves. Nor were these laws kept strictly for a very long time. Sons were later on seized for their fathers' debts, 2 Kgs 4:1, and interests were exacted, Neh 5:1, 2 Kgs 11:13; and in the time of our Lord the economic principles of the Jews seem to have approached very nearly to those of the rest of the commercial world. Matt 5:42; Matt 25:27; Luke 6:35; Luke 19:13.

(See USURY ). The merciful character of Moses’ law appears in the command not to keep the poor man’s outer garment, his covering by night as well as day, after sunset (Exodus 22:26,27; Deuteronomy 24:6,10-13,17; compare, however, Proverbs 22:27). The millstone, including all instruments necessary to life, and a widow’s garment, were forbidden to be taken. The creditor must not enter the debtor’s house to seize the pledge, but wait for the debtor to bring out an adequate security for payment. The debtor could be held as a bondman only until the seventh year, i.e. for six years, and not beyond the jubilee year, whatever his period of service might be (Exodus 21:2). Then he must be sent away with a liberal supply of provisions, the prospect of such a gift doubtless