Should Christians ever receive interest?

Dr. Ben Cooper, author of The Ethics of Usury and Deputy Director of courses at the Proclamation Trust and Cornhill Training Course, spoke with us about lending, usury, and the morality of modern finance.

What is lending, and how does it differ from usury?

Lending, at its most basic level, involves the transfer of money from one person to another for a set period, with the expectation it will be returned. It’s like lending a coat, there’s an assumption that you’ll get it back.

When there’s a charge for that loan, we move from simple lending to lending at interest. ‘Usury’ is a term with a varied history. Technically, it just means lending at any level of interest. However, it’s often used to describe excessive interest. In my study, I’ve stuck with the more traditional usage: usury is lending with interest, regardless of the rate.

You point out in your book that many influential voices during the Reformation believed all usury was prohibited. What led to that conclusion?

That belief comes from both biblical and cultural contexts. Most biblical texts that address lending at interest are negative. There’s only one that allows it under specific circumstances. On a straightforward reading, it seems clear that charging interest is prohibited.

Also, lending in the ancient world was often exploitative. Looking around at the social consequences of lending, many concluded it wasn’t something Christians should be involved in.

It’s worth noting that economic theory at the time was underdeveloped. Thinkers like Aristotle and Aquinas struggled with concepts of money and value because they lacked modern economic frameworks. Their view of lending was rooted in a physical exchange of goods, not abstract monetary systems.

Some Reformers, John Calvin for instance, took a different view. Why?

I think it was both theological and practical. Calvin, like Luther, wanted to be thoroughly biblical. But while Luther remained firmly against lending at interest, Calvin was open to it.

Calvin read the Bible very carefully. He considered all the relevant passages, including Deuteronomy 23, which permits lending at interest to foreigners. He was also writing in Geneva, a commercial hub, where he could observe lending practices firsthand. He saw that not all interest-based lending was harmful. In fact, it often contributed to prosperity. That’s where the tide begins to shift.

Why has opinion changed so drastically over time?

Interestingly, up until the Reformation, there was widespread agreement that lending at interest was wrong. Afterward, that consensus began to dissolve.

The change was driven by circumstances. Commercial and monetary systems were rapidly evolving. As societies witnessed the benefits of these systems – growth, trade, increased prosperity – they began to think again about the morality of lending at interest. Like Calvin, they went back to think through what the Bible actually says. When done responsibly, lending wasn’t just tolerated, it was seen as beneficial.

You introduce the concept of “moral proximity” in your book. What is it, and how does it relate to lending and borrowing?

I first encountered the term in John Schneider’s The Good of Affluence. It expresses a simple, biblical idea: we have greater moral responsibility toward those who are relationally close to us – family, neighbours, church members – than to those further away.

That doesn’t mean distant people are unimportant, but we can’t care equally for all 8 billion people on earth. Proximity helps us prioritise care.

This plays into Deuteronomy 23, where lending at interest is prohibited within the Israelite community but allowed with foreigners. The logic that your fellow Israelites were more likely to be in need, if they asked for a loan, it was probably out of desperation. You were called to help them, not profit from them. Foreigners, on the other hand, were more likely to be seeking commercial, essentially business loans.

Can lending at interest help reduce poverty?

Lending and credit systems, when done responsibly, can drive economic growth and reduce poverty. China is a clear example of where this has been successful. Credit markets allow capital to flow, enabling investments and large purchases – like property or starting businesses – that wouldn’t be possible otherwise.

We need to be careful, of course. But if we genuinely care about reducing poverty, we should be excited about responsible credit systems.

Take Kingdom Bank, for instance – it helps churches acquire buildings earlier than they otherwise could, which unlocks all sorts of ministry opportunities. Without access to lending, those opportunities might never happen.

Considering modern legal protections and social systems in the UK, could someone still be considered “poor”?

Absolutely. But not in the same way as in the ancient world. Today’s poverty looks very different. That said, many people are still economically vulnerable. These are individuals who are in precarious financial situations. Those for whom a loan could make things worse, not better.

Take someone with a gambling addiction. Or people who turn to payday loans because they have no other financial safety net such as family, savings and access to mainstream credit. They’re not poor in the absolute sense, but they’re economically stuck, and therefore at risk of exploitation.

That’s why I like the concept of “the doctrine of carefulness.” If there’s a real risk that an action could cause serious harm, then we should err on the side of caution. That’s especially true in lending.

At the end of your book, you call on believers to 1) avoid savings that fuel harmful lending, and 2) support lending to good causes. What practical steps can people take?

Start by choosing ethical institutions – like Kingdom Bank. It’s vital to work with banks that are not just ethically minded but Christian-minded. That gives you confidence your money won’t be used harmfully.

Most of us don’t investigate our financial institutions closely. We assume someone else is keeping them in check. But we should take responsibility to ensure our money is doing good, or at the very least, not causing harm.

We’re finite creatures. Even if you’re only giving away 10% of your income, that other 90% still matters. Use it ethically, thoughtfully, and in a way that serves others and the gospel.

Final thoughts?

It all comes back to care. Lending can be a force for great good – or harm. We need discernment, caution, and institutions that reflect the values of God’s Kingdom. That’s where Kingdom Bank can play a vital role.

—

Kingdom Bank offers individual Christians and organisations a way to align their finances with their values. All the money saved with us is used for lending to churches, Christian ministries and those who work for them across the UK, giving your savings an eternal impact.

We keep our lending rates as low as we possibly can by offering modest interest rates on our savings accounts. This allows savers to grow their deposits whilst enabling ministries on the ground to share the gospel in communities across the UK.

Explore our savings accounts and join in our mission.

Dr Ben Cooper explores this subject matter in more depth in his book The Ethics of Usury.