Usury: An Unethical Practice of Loaning Money Usury is defined as the practice of loaning money at an interest rate that results in an excessive amount of money paid back by the borrower. This practice is considered unethical and can even be illegal in certain states due to its predatory nature.

Usury is a practice that has been known of since the medieval times and is especially frowned upon within the religions of Christianity, Judaism, and Islam. This is because lending money at an interest rate with intent to make a profit off of it is seen as a form of exploitation and as such, is considered wrong.

In modern times, usury laws have been put in place to help protect citizens from predatory lenders. These laws vary from state to state and essentially, create interest rate caps that lenders must abide by. These caps help to keep lenders from charging the borrower unreasonably high interest rates and thus, avoid unscrupulous practices.

Unfortunately, usury still exists today in many places. Private lenders oftentimes get away with charging exorbitant interest rates, which can have devastating results for borrowers. Such loans can quickly become burdensome and result in a borrower being unable to ever truly pay back the loan completely.

It is important to remember that usury should always be avoided if possible. If one finds themselves in need of a loan, it is best to check the interest rate of the lender against the usury laws of the state they are in. If the interest rate is too high, it’s best to pass on the loan and pursue other avenues. Usury is an unethical practice and lending and borrowing money without taking part in it is always the best option.