The importance of borrowing money in our society mainly lies in its ability to empower individual members of the society financially. The borrowing of money is important as it enables an individual to gain the financial assistance needed in order to achieve further or increased financial growth (Luther, 2015) . In most cases, borrowed money goes into profiting or inevitably important ventures. As such, it empowers individuals to meet certain needs, which end up benefiting them in the end.
It is both appropriate and inappropriate to charge interest, mainly depending on the prevailing circumstances. For instance, it is appropriate to charge interest when a borrowed sum of money goes into profiting activities such as investments (Rothbard, 2010) . However, it would be inappropriate to charge interest, especially when dealing with poor and underprivileged borrowers with whom one is closely familiar.
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These scriptures inform the practice of lending money mainly through the prohibition of interest rates, especially when money is lent to needy individuals. They advocate for a system that does not take advantage of the people in need based on their problems (Luther, 2015) . They also advocate for a system that does not reap where one did not plant. They establish that the practice of lending money should not be profitable or carried out as a business deal.
Usury laws are laws that place a limit on the amount of interest that can be charged or accrued from a certain amount of borrowed money (Luther, 2015) . They are established to prevent the exploitation of borrowers. They, however, affect credit availability by increasing the probabilities that a loan will be repaid and ensuring that the repayment does not surpass the payable limits. As such, it balances the aspect of credit availability with the needs of the consumer. This means that credit availability is maintained and balanced according to the needs of the consumer.
The poor should be charged minimal interest rates based on their abilities to finance and repay their loans. In this case, loans should not be used to burden the poor. Instead, they ought to provide them with opportunities to grow.
Reference
Luther, M. (2015). On Commerce and Usury (1524) . Anthem Press.
Rothbard, M. N. (2010). The Economics of Calvin and Calvinism. Retrieved from Mises Institute: https://mises.org/library/economics-calvin-and-calvinism
