Borrowing is not prohibited scripturally, but neither is it encouraged. It is always presented as a negative with many warnings about its danger and misuse. Here are fundamental Biblical principles related to borrowing.
Avoid borrowing unless absolutely necessary: Borrowing should not be a way of life but the exception. Only if there is no other way to make provision for your need, should you borrow money. It is best to pay cash for all consumer purchases, cars, and routine expenses and to even pay for your home with cash if possible.
Luke 12:57-59 says:
“As you are going with your adversary to the magistrate, try hard to be reconciled on the way, or your adversary may drag you off to the judge, and the judge turn you over to the officer, and the officer throw you into prison. I tell you, you will not get out until you have paid the last penny.”
Avoid signing surety as a loan: Surety is making yourself personally liable for a debt if there is a failure to pay. In other words, it is a loan that has no collateral and is backed only by your personal promise. Proverbs 6: 1- 3 says:
“My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth.
So do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Allow no sleep to your eyes, no slumber to your eyelids. Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.”
Avoid long term debt: In Deuteronomy 15:1 the Lord instructed the Israelites to lend and borrow for only 7 years.
Repay what you owe: Psalm 37:21 says that the wicked borrow and do not repay. If you borrow it, pay it back.