What is a Jewish Free Loan?

An age-old tradition recrafted for the 21st century, a Jewish free loan is a small personal loan that is interest-free and can be paid back on a timeline that meets each borrower’s individual needs.

Loans, without the bank

Where do interest-free loans come from?

Rooted in teachings from the Torah and sages, Jewish free loans are a time-honored tradition in the U.S. and beyond. In fact, most U.S. cities play host to at least one Jewish or Hebrew Free Loan agency. Unlike JFLC, some Jewish loan societies cater only to the needs of the Jewish community and do not have income caps. JFLC serves low- to moderate-income people of all backgrounds who need access to capital.

JFLC: not Chicago’s first, but here to last

At JFLC, we’re proud to follow in the inimitable footsteps of Minnie Low — a lifelong friend and close colleague of Jane Addams — who founded Chicago’s first Woman’s Loan Association in 1897, which dispensed thousands of dollars of interest-free loans every year to women and Jewish immigrants. 

As admirers of Low’s lifelong commitment to progressive social justice causes, JFLC is proud to shepherd Low’s legacy into the 21st century by providing quick and accessible financial assistance to low- and moderate-income Chicagoans when they need it, how they need it. 

Loan Possibilities 

JFLC borrowers’ financial status can be wide-ranging, and their potential financial needs can also run the gamut, including:

  • General expenses: transportation, technology, and debt consolidation

  • Employment: job-search, initial costs (transportation/relocation), job training

  • Healthcare: medical, mental, and dental

  • Women & children: childcare, education, fertility, adoption

  • Education: tuition, supplies

woman opening door smiling
 

 How do zero-interest loans work?

JFLC operates as a revolving loan fund, which looks like…

  • 1) Pooling

    Funders’ money is pooled together and the number of loans that can be granted to borrowers in a given year is carefully calculated.

  • 2) Lending

    JFLC reviews small personal loan applications on a rolling basis and, as the budget permits, provides qualifying individuals with interest-free loans of up to $6,000.

  • 3) Repaying

    The borrower and JFLC work together to devise a repayment plan that prioritizes what is feasible and realistic for the borrower.

  • 4) Re-pooling

    As funds are repaid by borrowers, those dollars are reinvested in the general pool, and loaned out to new borrowers in the future.

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“If you lend money to My people, even to the poor among you, do not act toward them as a creditor; you shall not charge them interest.”
— Exodus 22:24