Christian Living Resources Living Well Money

Should You Loan Out Your Money?

Whether a family member or a stranger approaches you, it’s, at times, a difficult question to answer: should you loan out your money?

While on the one hand, you need to be fiscally responsible; on the other, you want to help those in need. Right? So what are the pros and cons of lending out your money? And more importantly, what does the Bible say about it?

Pros of Lending Out Your Money

  • Blessing someone in need

It’s hard to imagine that Jesus would pass someone in need and not help them–for any reason. Can you imagine being at the lowest point of your life and needing help, only to be given the money you need to eat a warm meal after days of going hungry or having the ability to pay your rent when you were afraid of losing your home? How incredible would it be to receive that blessing? Now think about how wonderful it would be to give that blessing to someone else.

  • Recognizing that the money is not yours

We know, as believers, that we are stewards of our money, not owners. The willingness to give and lend money shows that we don’t claim ownership of the money we do have.

Cons of Lending Out Your Money

  • Enabling negative behavior

What if giving or loaning your money causes more harm than good? This is a tough call because we are told to love without judgment, but if you know that someone is using the money you lend them for self-destructive purposes, you might not want to enable them. Try not to make assumptions about how they’ll use the money, but seek wise counsel from a pastor or someone who you think will see both sides.

  • Putting yourself at risk financially

One of the most significant risks of loaning money is that you might not get paid back. If you give out a large amount of money and expect to be paid back, and then you aren’t, you could be jeopardizing yourself and your family. Take this into account when loaning money.

What the Bible Says

No matter what we think or feel about something, we know as believers it is essential to turn to the Word and see what the Lord has told us about it.

So what does the Bible say about the subject of lending and borrowing? It turns out the answer is a whole lot. Click here for Bible references about lending money. However, here is just one to consider:

“And if you lend to those from whom you expect to receive, what credit is that to you? Even sinners lend to sinners to get back the same amount. But love your enemies, and do good, and lend, expecting nothing in return, and your reward will be great, and you will be sons of the Most High, for he is kind to the ungrateful and the evil. Be merciful, even as your Father is merciful. “Judge not, and you will not be judged; condemn not, and you will not be condemned; forgive, and you will be forgiven; give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap. For with the measure you use it will be measured back to you.”     Luke 6:34-38