Exodus 22: 25 – ‘If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.’
Unless you work in the financial field of lending money to others for business, you shouldn’t be in a position of trying to earn interest on loans. If a friend or family member needs a loan or you see someone in need that you could help financially, loan this without thinking of your own financial gain from the action.
For some people to get ahead, all they need is assistance of some finances until they can pay it back to you. Don’t make this harder by charging interest on the amount loaned to them.
Chances are if you help them in their time of need, once they are in a position to do so, they will go on to help others. Your assistance to one person may enable them to then help another ten people!
Financial tip – compare the benefits of saving money and earning interest with keeping loans down that are incurring you interest. A mortgage may charge 5% interest while savings earn you 4% interest. It is wiser financially to put extra funds against the mortgage and save interest of 5%, rather than earn interest of 4% that ends up getting taxed.