Economic Life (14) Security

Some people might need a loan to get a business started or to expand an existing business. This should be rare, because debt is dangerous. Business should operate on equity. However, if a loan is necessary, interest is permissible, but the term should be limited to seven years. The lender was entitled to take some security for their loan, but they must not take anything that is needed for the borrowers livelihood or safety.

Do not take a pair of millstones—not even the upper one—as security for a debt, because that would be taking a man's livelihood as security (Deut 24:6).

Business equipment must not be taken as security, because it would prevent the person from operating their business.

If you take your neighbour’s cloak as a pledge, return it to him by sunset, because his cloak is the only covering he has for his body. What else will he sleep in? When he cries out to me, I will hear, for I am compassionate (Ex 22:26-27).

If the man is poor, do not go to sleep with his pledge in your possession. Return his cloak to him by sunset so that he may sleep in it. Then he will thank you, and it will be regarded as a righteous act in the sight of the LORD your God (Deut 24:12-13).

If personal effects are taken, they must be returned at the time they are needed.