When exactly did God change his mind and say it was "Ok" to charge interest on loans?

Question

I'm just curious, since this was considered a sin for almost the first 1800 years of Christian history.

Arnon --- "usury" was the term for ANY lending at interest.

Interest rates tended to be higher because default risk was higher; thus this was reflected, NATURALLY, in the cost of capital.

Art, yes, it was. I'll give you some sources if you like, but it is at least mentioned in virtually all History Econ Thought or European religious histories.

Answer 1

After "he" took a high school economy class he decided that charging interest might be a good idea.

Answer 2

I'm not sure, but it must have been before Jesus told the "Parable of the Talents", which uses the earning of interest as a positive metaphor.

There is a lot of ambiguity surrounding loans and interest in the Abrahamic traditions where defaulting on a loan could result in slavery, as it it still does, effectively, in some parts of the world.

St Thomas Aquinas makes a distinction between money lending and investment for increase, the latter being where the investor shares the risk of the enterprise. The distinctions remain blurred even in modern capitalism (which was unfamiliar to Jesus, Aquinas, Mohammed, or the early biblical autors).

The prohibitions were more stark in the Islamic tradition, and results in the strange modern phenomenon called "Islamic banking" - which is probably more about branding than an alternative financial system.

Answer 3

This practice was forbidden between fellow hebrews, but not any other people (Lev 25) There was also a statute of limitations set forth for hebrews that were in debt, and this provision (Jubilee) is the basis for the current US statute of limitations and bankruptcy laws. (7 years for all debts except federal taxes, which is a 10 year limitation) This one US practice may account for the success of the US as a nation, but lately collection agencies have found a technical loophole, and have been rolling accounts over before the 7 year term expires, thus preventing the statute of limitations from having any legal 'teeth'. God will certainly NOT change His mind about those who keep, or those who break, His merciful statutes, and this country would do well to take note of this...USA is forgetting it's founding principles more and more.

Answer 4

Interest free loans are spoken of in Leviticus 25:35-37 and Deuteronomy 23:19 There is also to be a forgiving of all debts every 7 years accorded to Deut 15:1-3

It is amazing to see all the things written in the book of the law that we don't follow in our modern western civilization.

Answer 5

...and before that as well...charging interest was also considered a sin under Hebrew law for many centuries before that (at least when lending to other Jews).

However, I don't recall seeing or reading anything that suggests God has changed his mind about the issue of interest on loans? Where did you get this idea? Was this a roundabout way to suggest that any Christian who charges interest is committing a sin...or perhaps you were suggesting that the entire banking system is founded on sin? If so, then I won't disagree with you on either issue...I don't have any evidence that God changed his mind...people changed their minds! People chose to change their perception and interpretation God's instructions for handling our finances!

Answer 6

Talk to John Calvin (1509 – 1564)

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...Calvin also had insights into the workings of economics. It is his understanding of "usury" that interests us here. Calvin was part of a society that had forbidden the lending of money at interest for 750 years (since the council of Nicaea in 775). During that period many laws were passed against usury but as many ways around the law were found. It is in this context that Calvin brings new insight into society. Taking interest on loans was officially banned by canon law, but in practice was accepted by the community. In Geneva prior to the Reformation, interest rates were set at 5% per 3 months (Bieler 55).

By 1544 Calvin had "formulated a doctrine about lending money at interest" (55). According to Bieler, Calvin had been set free from the traditional views held by the medieval theologians. Calvin was no longer bound to the traditional views of the past and so was free to develop his own biblical ethics concerning the lending of money (56).

Turning to Scripture, Calvin found many instances in which the lending at interest was forbidden. These would have been the same passages to which canon law appealed; yet Calvin's interpretation was new, even revolutionary. Calvin allowed for the lending of money at interest. By applying new hermeneutical insights Calvin learned that the banning of usury was in relation to lending to the poor. God, according to Calvin, does not want His people to be tightfisted to the poor. In his commentary on the law Calvin interprets the ban on interest in Exodus 22:35 to be a command of charity to the poor and not a total ban on taking interest (Comm. Last Four Books of Moses, vol. 3, 126). In his commentary on Psalm 15:5 Calvin asks the question "Whether all kinds of usury are to be put into this denunciation, and regarded as alike unlawful" (Comm. on Psalms, 212). Again, Calvin points to the role of the rich and the necessity of kindness to the poor but goes on to say that a total ban on interest is not what the psalmist is advocating. If there is a total ban, the man in need of money, who will be sinning by borrowing money, will be "rendered bolder by despair, and may rush headlong into all kinds of usury . . ." (212).

Answer 7

God never changes. Man is the one who likes to play God and rewrite His commandments.

Answer 8

You make it sound like I want to pay interest.
I believe the forbidden practice was usory and it is illegal.

Answer 9

It was?

Pastor Art