The mitzvah of lending money to our fellow Jews at no interest has its origin in three verses in the Torah (Exodus 22:24, Leviticus 25:37, and Deuteronomy 23:20). In the Talmud, Simon the Just taught that doing deeds of kindness (gemilut chesed) such as lending to the poor is one of the values which preserves the world. Our great sage Maimonides taught that to lend is more meritorious than to give because it saves the recipient from becoming a beggar.

Throughout our history, Jews have constantly helped one another. We have ransomed the captive and redeemed the oppressed. We have lived by the motto “Kol Yisrael Arayvin Zeh b’Zeh — All Israel is bound together.” In the Middle Ages, many communities set up societies that aided in feeding the resident poor, caring for the traveler in their midst, housing the yeshivah student, dowering brides and burying the dead.

This age-old tradition was brought over to the United States and Canada from Europe. While other immigrant groups established credit associations, the idea of not charging interest is a particularly Jewish one. Over 100 years ago, the first free loan organizations began in New York and San Francisco. Originally called Gemilut Chesed societies, the name changed to Hebrew Free Loan Societies as the concept spread from city to city.