usury Summary and Overview

the sum paid for the use of money, hence interest; not, as in the modern sense, exorbitant interest. The Jews were forbidden to exact usury (Lev. 25:36, 37), only, however, in their dealings with each other (Deut. 23:19, 20). The violation of this law was viewed as a great crime (Ps. 15:5; Prov. 28:8; Jer. 15:10). After the Return, and later, this law was much neglected (Neh. 5:7, 10).

(The word usury has come in modern English to mean excessive interest upon money loaned, either formally illegal or at least oppressive. In the Scriptures, however the word did not bear this sense, but meant simply interest of any kind upon money. The Jews were forbidden by the law of Moses to take interest from their brethren, but were permitted to take it from foreigners. The prohibition grew out of the agricultural status of the people, in which ordinary business loans were not needed. and loans as were required should be made only as to friends and brothers in need. --ED.) The practice of mortgaging land, sometimes at exorbitant interest, grew up among the Jews during the captivity, in direct violation of the law. #Le 25:36,37; Eze 18:8,13,17| We find the rate reaching 1 in 100 per month, corresponding to the Roman centisimae usurae, or 12 per cent. per annum.

U'SURY , by modern usage, means exorbitant or unlawful interest, but in the Scriptures it means simply interest. The Law of Moses prohibited the Jews from taking any interest of each other for the loan of money or of anything else, though they were allowed to take it of foreigners. The exchangers of money were in the habit of receiving it at low interest and loaning it at high interest, taking the difference for their gain. Eze 22:12. The practice of usury is severely denounced in the Scriptures. Neh 5:7, 1 Kgs 16:10; Ps 15:5; Prov 28:8. It has sometimes been asked why the Jews were permitted to take usury of strangers, while they were forbidden to take it of each other. It is quite clear that the civil economy of the Jewish state excluded the general use of usury as a means of gain in a medium of exchange. They had no commerce with foreign nations, as we have in modern times, or as the Gentile nations had in that age. They had their inheritance apportioned to them in the division of the land, and were rather branches of the same family settled together than independent communities, and their united business transactions were to be of the most friendly nature. In dealing with foreigners whose object was gain, they were allowed to avail themselves of the ordinary principles of trade.

neshek, from a root "to devour." (See LOAN.) Any interest was forbidden to be exacted from an Israelite brother, but was permitted from a foreigner (Exodus 22:25; Leviticus 25:35-38; Deuteronomy 23:19-20). Israel was originally not a mercantile people, and the law aimed at an equal diffusion of wealth, not at enriching some while others were poor. Help was to be given by the rich to his embarrassed brother to raise him out of difficulties, without making a gain of his poverty (Psalm 15:5; Proverbs 28:8; Jeremiah 15:10; Ezekiel 18:8; Ezekiel 18:17).

Nehemiah (Nehemiah 5:3-13) denounces the usurious exactions of some after the return from Babylon; he put a stop to the practice. They took one percent per month, i.e. 12 percent per annum (the Roman centesimae usurae). The spirit of the law still is obligatory, that we should give timely help in need and not take advantage of our brother's distress to lend at interest ruinous to him; but the letter is abrogated, as commerce requires the accommodation of loans at interest, and a loan at moderate interest is often of great service to the poor. Hence it is referred to by our Lord in parables, apparently as a lawful as well as recognized usage (Matthew 25:27;