Loan Companies | Biblically OK or Not?

Exodus 22:25

If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him

I don’t see nothing wrong with loan companies (except maybe title loan places).    Well, the thing is that loan companies can do much good in the world, assuming the borrowers are responsible.  And I figure the reason many people hate and demonize the finance industry is because they are irresponsible (the borrowers) and they got burned.

Note: Myself, recently I got two loans, one for $700, and the other for $1000, even with bad credit.  And this money was a huge help and so I wonder what it would be like if the finance industry was illegal.

But if the finance industry was illegal, who would have the money to help people when they’re down, because you know, we all make mistakes.

Note: the above verse indicates any interest is forbidden, but the Israelites were free to extract interest from foreigners.   It was a unique situation to that time in history and can’t be totally applied now.  Well, the verse never said interest, itself, was wrong only it wasn’t a good idea between Israelites at that time in history.

And unreasonable interest, in the context of exploitation, is NOT biblically supported.

Proverbs 28:8

One who increases his wealth by interest of any kind, collects it for one who is gracious to the poor.

The above verse gives a situation where the greedy person dies and so the next heir, who is a good person, uses it wisely.