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 ( Exodus 22:25 ; Deuteronomy 23:19 Deuteronomy 23:20 ; Leviticus 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 ( Psalms 15:5 ; Proverbs 6:1 Proverbs 6:4 ; 11:15 ; 17:18 ; 20:16 ; 27:13 ; Jeremiah 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 ( Exodus 22:26 Exodus 22:27 ; Deuteronomy 24:12 Deuteronomy 24:13 ). A widow's garment ( Deuteronomy 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 ( Exodus 21:2 ; Leviticus 25:39 Leviticus 25:42 ), but foreign sojourners were to be "bondmen for ever" ( Leviticus 25:44-54 ).
M.G. Easton M.A., D.D., Illustrated Bible Dictionary, Third Edition,
published by Thomas Nelson, 1897. Public Domain, copy freely.
[S] indicates this entry was also found in Smith's Bible Dictionary
Bibliography InformationEaston, Matthew George. "Entry for Loan". "Easton's Bible Dictionary".