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Helping Hands: Free loan societies are just what the Torah ordered.
Behind on the mortgage? They are there to assist. Need money for tuition? You can call on them for help. Drowning in bills? They will toss you a lifeline. Jewish free loan societies have been helping Jews in need since before the turn of the century and, as the name implies, without charging interest. They exist in every city where there is a significant Jewish population, including Philadelphia. In this area, the Lubavitch Free Loan Society, or G'milus Chesed, is administered by the local Lubavitch Center, under the stewardship of Rabbi Zalman Lipsker. The Philadelphia Hebrew Free Loan Society is a smaller institution based at Beth Sholom Congregation in Elkins Park.
Jews brought the concept of free loan societies with them when they immigrated to the United States. Once established here, they helped newcomers make ends meet. Today, the free loans and similar agencies typically help only those who are referred to them by Jewish social service organizations.
"It is the highest point of charity that a person receive help rather than be treated as a charitable case," Lipsker says. Moreover, "the Torah says not to charge any interest and Jews are halachically forbidden to pay interest. For observant Jews, a free loan society is one of the few places they can turn to for help." That is why, says Lipsker, the Lubavitch Free Loan Society helps only Jews. Non-Jews, not bound by the laws of the Torah, can seek loans from banks and other traditional lenders.
The Lubavitch Free Loan Society was established in 1973 by the Lubavitcher Rebbe, the late Menachem Schneerson. "The Rebbe felt it was very important to have a free loan society in the city to help Jews," says Lipsker, whose fund lends a total of $200,000 a year in $1,000 allotments. It does not actually have $200,000, Lipsker points out. It keeps relending the same money as soon as it is paid back. In this way, between 150 and 200 area Jews are helped each year.
"I have people who are going to college or need a down payment," he says, offering an example of a typical borrower. Many requests come from parents who want to send...