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Interest-Free Loan (Gemach)

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The greatest form of charity
Lending money is the highest form of charity, far greater than giving handouts. A handout may preserve a life for a day, but a loan preserves that sense of self-sufficiency necessary to get back on your feet.
Yisrael lived in Ramat Gan, Israel, where he had his own little house and small farm. He was a chicken farmer and had enough laying chickens to provide him with a modest income for himself and family. He was neither rich nor poor, but he was very generous...
Why does the Torah forbid lending money with interest? The "Culture of Dependency" created by many welfare states can provide some insight in this area...
The Torah prohibits a Jew from borrowing, lending or being a party to a transaction that involves charging another Jew interest.
Just as a guarantor for a loan knows that he can be called on at any time to make good his pledge, so too we've got to educate children to appreciate and live up to their responsibilities...
Long before his bar mitzvah, the Previous Rebbe was already preoccupied with doing acts of kindness. At age eleven he established a free-loan fund, allowing him to help the needy in a dignified manner.
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