Charles Ellicott Commentary Exodus 22:25-27

"If thou lend money to any of my people with thee that is poor, thou shalt not be to him as a creditor; neither shall ye lay upon him interest. If thou at all take thy neighbor`s garment to pledge, thou shalt restore it unto him before the sun goeth down: for that is his only covering, it is his garment for his skin: wherein shall he sleep? And it shall come to pass, when he crieth unto me, that I will hear; for I am gracious." — Exodus 22:25-27 (ASV)

The Mosaic law of borrowing and lending was unusual and specific. It was absolutely forbidden to exact any interest from those borrowers who were Israelites.

The wording of the present passage, and of some others (Leviticus 25:35; Deuteronomy 15:7), construed strictly, prohibits interest only on loans to the poor. However, because in an early state of society only the poor typically wished to borrow, this qualifying expression lost its force. Consequently, exacting any interest from any Israelite came to be regarded as wrong (Proverbs 28:8; Nehemiah 5:7; Nehemiah 5:11; Ezekiel 18:13; Ezekiel 22:12).

Furthermore, some prohibitions, such as Deuteronomy 23:19, were expressed in the most general terms. On the other hand, lending money with interest to foreigners was distinctly allowed (Deuteronomy 23:20), and no limit was placed on the amount of interest that could be taken.