Overview
Old Testament law prohibited charging interest (usury) on loans to fellow Israelites, viewing such loans as acts of compassion for the poor. However, interest could be charged to foreigners. The New Testament presents no explicit prohibition on interest, with Jesus and Paul referencing normal lending practices without condemning reasonable interest.
Key Scriptures
"You shall not charge interest on loans to your brother" (Deuteronomy 23:19, ESV). "If your brother becomes poor and cannot maintain himself with you, you shall support him as though he were a foreigner and a sojourner" (Leviticus 25:35, ESV). "You may charge a foreigner interest, but you may not charge your brother interest" (Deuteronomy 23:20, ESV). Jesus referenced lending at interest as normal practice: "You ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest" (Matthew 25:27, ESV).
Application
Christians should examine lending practices through the lens of compassion toward those in genuine need, while recognizing that modern interest-based banking serves different economic functions than Old Testament lending.