Deuteronomy 24:10 – 13 – ‘When you make a loan of any kind to your neighbour, do not go into his house to get what he is offering as a pledge. Stay outside and let the man to whom you are making the loan bring the pledge out to you. 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.’
Generally it is people in need who require a loan. Some of them take the loan to improve upon their wealth. Others do it because they have next to nothing. With a loan they can buy what is needed for themselves and their family.
If you are providing a loan to someone in need, consider what you require of them in return. Perhaps it is best as a Christian if you require nothing! Do not give, expecting it back or knowing that you cannot afford to lose it. Give with the mentality that you’re blessing someone and that is enough.
When you give to someone, they may wish to provide you with a pledge in return. As a sign of their honour, they are providing something to you of their own. When they reimburse you, then they can receive their pledge back.
Return His Cloak
If the item that is pledged is required for the person to stay warm or earn a wage, return it! Do not keep it overnight. Return his cloak, knowing your neighbour’s intention to pay you back what you have loaned them. This is seen as righteous in God’s eyes if you do it.
Wealth tip – consider splitting your budget into the areas of tithes/offerings, living expenses and saving.