The act of taking collateral, also known as pledging, is a practice mentioned in the Bible, particularly in the context of lending and borrowing. In ancient Israelite society, collateral served as a security measure for loans, ensuring that the lender would be compensated if the borrower defaulted. The Bible provides specific guidelines and ethical considerations regarding this practice, reflecting the broader principles of justice, mercy, and compassion that underpin biblical law.

Biblical References and Guidelines

1. Exodus 22:25-27: The Mosaic Law addresses the act of taking collateral in the context of lending to the poor. "If you lend money to My people, to the poor among you, you are not to act as a creditor to him; you are not to charge him interest. If you take your neighbor’s cloak as collateral, return it to him by sunset, because his cloak is the only covering he has for his body. What else will he sleep in? And if he cries out to Me, I will hear, for I am compassionate" . This passage emphasizes the importance of compassion and the necessity of returning essential items, such as a cloak, to the borrower by nightfall.

2. Deuteronomy 24:10-13: Further instructions are given regarding the treatment of borrowers. "When you lend anything to your neighbor, do not enter his house to collect security. You are to stand outside while the man to whom you are lending brings the security out to you. If he is a poor man, you must not go to sleep with the security in your possession; be sure to return it to him by sunset so that he may sleep in his own cloak and bless you. And it will be credited to you as righteousness before the LORD your God" . This passage underscores the dignity and respect owed to the borrower, prohibiting the lender from intruding into the borrower's home.

3. Job 22:6: In the book of Job, taking collateral is mentioned in the context of a rebuke. "For you demanded security from your brothers without cause, stripping off their clothes and leaving them naked" . This verse highlights the potential for abuse in the practice of taking collateral, where it can become an instrument of oppression rather than a fair transaction.

4. Ezekiel 18:7, 12, 16: The prophet Ezekiel speaks against those who exploit others through unjust collateral practices. "He does not oppress anyone, but returns the collateral for a loan; he does not commit robbery, but gives his bread to the hungry and covers the naked with clothing" . This passage aligns the act of returning collateral with righteousness and justice.

Ethical Considerations

The biblical approach to taking collateral is deeply rooted in the ethical treatment of individuals, particularly the poor and vulnerable. The laws and narratives emphasize the need for fairness, compassion, and respect for human dignity. The act of taking collateral is not merely a financial transaction but a moral issue that reflects one's relationship with God and others.

The Bible's instructions on collateral serve as a reminder of the broader biblical themes of justice and mercy. They call believers to act with integrity and kindness, ensuring that financial dealings do not become a means of exploitation or harm. The act of taking collateral, when conducted in accordance with biblical principles, becomes an opportunity to demonstrate righteousness and reflect God's character in the community.