Loan

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).