Hebrew Free Loan Society of New York

History

“A loan is better than charity, for it enables one to help oneself.”
–Maimondes

Drawing on the Jewish tradition of Gemilut Chassadim (performing deeds of loving kindness), free loan societies were a centuries-old staple of East European Jewish communal life. They were organized to lend money without interest to people temporarily in need, an act of kindness considered superior to giving alms because a loan fosters self-sufficiency while preserving dignity.

The Hebrew Free Loan Society grew out of this tradition and the Jewish immigrant experience on New York’s Lower East Side. In the late 19th century, there was no unemployment insurance or public assistance. For those struggling to pay the rent or stock their pushcarts, there were very few places to turn.

In 1892 at the Vilna Synagogue, New York’s Hebrew Free Loan Society (HFLS) was born. Funded with contributions, HFLS trusted people to pay back small, interest-free loans in weekly installments—without collateral.

Today, hard-working people still struggle. In fact, 244,000 people live in poor Jewish households—150 percent of the federal poverty guideline— in the New York area. In New York City ’s Russian-speaking Jewish community, nearly half live below that standard.

The Hebrew Free Loan Society is still here, still trusting people to pay back an interest-free loan. Since its inception, HFLS has provided more than more than $187 million in loans to nearly 860,000 borrowers while maintaining a less than one percent loss rate.

In 1892, the founders started with working capital of $95. Today, that money has multiplied thousands of times over. HFLS now provides more than $6 million in interest-free loans annually.