Beth-El Baptist Church

07/08/2012

Greg Tomlinson


What should a Christian do about loans?


Taking out loans is a very common practice today and needs to be evaluated in light of what the scriptures have to communicate about loans.


  1. Should Christians ever take out a loan?

Deuteronomy 15:6-11 Proverbs 13:12

1 Timothy 6:7-10


In general, a Christian should not take out loans. This is especially true of loans of things that you can actually wait until you purchase them. A loan on a car, for example, should be seriously reconsidered. Perhaps a used car or a smaller car or no car (for a time) should be considered so that there is no debt that can become a problem. A loan for a home may be considered prudent since a man must have a place to live. The options are to rent a place – providing little ability to save to purchase – or to be homeless until enough is saved or to live with a friend or relative until enough is saved (Proverbs 25:17). Business loans ought to also be seriously considered and other options considered as well as your own heart to ensure that the business loan is not an expression of personal greed or desire to be wealthy.


  1. What principles should be considered before taking out a loan?

Deuteronomy 23:21-23 Proverbs 22:7

Ecclesiastes 5:4-5 Luke 14:28-30

Proverbs 23:1-5; 12:14-15; 24:27 Matthew 5:34-37


It is important to remember that when you take out a loan, you are responsible to the lender for the repayment of the loan. This is even true if the purpose of the loan drops in value (like a house). God has called us to be people who keep our word and as such we need to obey the voice of God. It is also wise to consider why the lender is lending to you. It could be that he is lending to you in order to control or exploit your indebtedness to you. It is also important to be content with whatever it is that God has given you. This means that a loan should not be taken out for something that is more than you can afford or should afford. It is often better to wait until later than to rush into taking on a loan.


  1. What principles should be considered before lending to another?

Exodus 22:25-27 Leviticus 25:35-37

Deuteronomy 23:19-20; 24:10-13 Psalm 37:23-26; 112:5-6

Proverbs 19:17 Luke 6:32-36


When lending to another, it is important for the Christian to assume that he will never be repaid. This places limits on what can and should be lent out. Never lend out more than you can afford to lose. Never get upset if the loan is never repaid.




  1. What principles should be considered regarding cosigning a loan?

Proverbs 6:1-5 17:18


When you cosign a loan, you are the one who is financially responsible. If you are not able to make the payment of the loan for the other person then do not cosign. When you cosign for a loan, you may have to delay other financial opportunities or purchases until the loan is fully repaid either by the intended borrower (your friend or relative) or until you have set aside enough money to pay off the loan in full.