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Christians oppose payday loans as ‘sinful’


(RNS) To a majority of Christians, those who provide payday loans, with their three-digit interest rates, are sinners.

That’s among the findings of a new poll conducted by LifeWay Research, a Nashville-based Christian group, that surveyed 1,000 self-identifying Christians in 30 states with no regulations on payday lending.

“Payday loans with their exorbitant interest rates operate far outside of what is ethical or biblical,” Barrett Duke, vice president for policy of the Southern Baptist Convention’s Ethics and Religious Liberty Commission, said of the findings.

Among the findings of the online poll, conducted in February:

  • More than three-fourths of Christians (77 percent) say it is “sinful” to loan money in a way that financially harms the borrower.
  • More than 80 percent of Christians believe their states should have laws that regulate payday loans.
  • Fewer than 10 percent of Christians say the Bible influences their opinions on lending money.
  • Seventeen percent of Christians say they have taken payday loans, including 20 percent of Protestants and 12 percent of Catholics. Just under half of African-American Christians (49 percent) and a quarter of Hispanic Christians (24 percent) say they have taken payday loans.

Payday loans, which have interest rates sometimes as high as 400 percent, have been in the crosshairs of Christian groups before. In January, groups of Catholics and evangelicals in Iowa worked to place a ban on payday loans before that state’s House of Representatives. The measure reverted to committee.

And in 2014, a coalition of consumer advocates and faith leaders lobbied Congress to cap the amount of interest that can be charged for such loans at 36 percent.

Islam prohibits the charging of interest on loans.

(Kimberly Winston is a national reporter for RNS)

About the author

Kimberly Winston

Kimberly Winston is a freelance religion reporter based in the San Francisco Bay Area.


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  • From the Christian perspective, broadly speaking, usury is condemned. That said, practically speaking, people need to function with common sense and with their eyes open. If triple digit interest is allowed by law (a sad state of affairs at best) then one should think very carefully before availing themselves of such predatory lending. The consequences of temporarily being unable to meet an obligation may be less onerous.

  • The problem, Dio, is that the payday loan people like to prey on those with limited intellectual capacity, mental illnesses, and the like.