Being in a position to lend money to others is a blessing, whereas being the borrower is a curse (see Deuteronomy 28:44-45). Unless there's an overwhelming need to borrow, it's unwise for God's children to put themselves under the curse of indebtedness.

The lender must evaluate the character of the borrower. To distribute money into the hands of a drug addict, compulsive gambler or cultist is irresponsible. Furthermore, we should weigh whether a loan is what this person really needs.