That would have been real news to the devout Catholic banker Cosimo deMedici in the 1400s.
They knew. And they nuanced the hell out of that rule by inventing letters of credit. Which allowed them to not technically lend the money, but instead to pay your bill for you, and you’d pay them back, but it wasn’t an interest loan, honest, just ask them. Probably helped a lot that the Catholic Church really wanted to borrow money, but not from Jews.
https://bigthink.com/culture-religion/how-the-medici-family-created-and-lost-their-banking-empire/
“That would have been real news to the devout Catholic banker Cosimo deMedici in the 1400s.”
And probably to Jakob Fugger as well. The Catholic Fuggers aren’t as well known but they may have been the largest banking family in Europe.
IIRC the argument against lending came from Artistotle, who argued that “money is sterile” and cannot increase, which he believed it had to do in order for interest payments to work.
Catholic scholastics of the Middle Ages were learned in the Greek philosophers and their ideas about banking and the nature of the universe more often derived from the ancient Greeks rather than from the Bible.