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Proverbs 19:17, “Whoever is kind to the poor lends to the Lord.”

Microfinance is considered globally as a tool for poverty alleviation. Many Christian development organizations are providing financial services as part of their interventions in poverty-stricken areas. In Myanmar, where almost 30% of the 51 million population are poor, participation in microfinance services is being considered to address poverty among Christians. Some members of the church are asking if lending is biblical and if Christians as individuals or as an institution can provide lending services. The bible does not prohibit lending, but it provides limitations as pointed out in Exodus 22:25, “If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest.”

It can be viewed from the verse that there were two purposes for borrowing. The first loan purpose refers to the basic household consumption of the needy. There were needy people while the Israelites were wandering in the wilderness and they need help. The early church in the New Testament likewise has to take care of the needy particularly the widows (Acts 6:1). Lenders were asked not to charge interest. They were also refrained from collecting collaterals. If they do collect a security, they have to give it back before sundown so that the poor borrower can still use it. In essence, it should more of an act of kindness, helping needy brothers or sisters in the faith rather than a strict business transaction. It should be considered as an act of service to God as expressed in Proverbs 19:17, “Whoever is kind to the poor lends to the Lord.”

The second purpose refers to business transactions where the borrower needs money to expand his business or to complete a business transaction. It is therefore normal to lend for commercial purpose and charge interest for the use of the funds. The assumption is that the funds will be used to gain profit and therefore charging interest is proper. Taking a collateral or security is also a common practice allowed as stated further in Exodus 22:26, “If you take your neighbor’s cloak as a pledge...”

It is clear lending as a business activity is allowed in the bible and the limitations were designed to prevent the lender from exploiting the borrower on one hand; and on the other hand, they remind the borrower to make use of the borrowed resources productively and be discipline to pay back the lender. Microfinance services therefore as a development intervention has a clear biblical basis. It can be implemented to improve the income-generating capacities of Christian entrepreneurs and at the same time address the needs of the poor.

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