Gemach

Gemach (Hebrew: גמ"ח‎‎, plural, גמחים, gemachim, an abbreviation for גמילות חסדים, gemilut chasadim, "acts of kindness") is a Jewish free-loan fund which subscribes to both the positive Torah commandment of lending money and the Torah prohibition against charging interest on a loan to a fellow Jew. Unlike bank loans, gemach loans are interest-free, and are often set up with easy repayment terms.

Gemachs operate in most Jewish communities. The traditional gemach concept — that of a money-lending fund — extends loans on a short- or long-term basis for any need, including emergency loans, medical expenses, wedding expenses, etc. However, many people have expanded the concept of gemachs to include free loans of household items, clothing, books, equipment, services and advice.

Gemachs may be operated both on a communal basis (such as by treasurers of community funds) and an internal basis (such as by businesses, organizations, schools and families). The ideal of contributing to or forming one's own gemach was popularized by Rabbi Yisrael Meir Kagan (the Chofetz Chaim), who addressed many halachic questions about the practice and lauded its spiritual benefits in his landmark book, Ahavat Chesed ("Loving Kindness").

Money gemachs fulfill the Biblical imperative, "You shall lend money to my people" (Exodus 22:24) as well as the Biblical injunction, "You shall not give him your money for interest, nor may you give him your food for increase" (Leviticus 25:37).

Gemachs which provide other services, such as clothing, books and equipment, fall under the general Biblical commandment to do kindness, "Love your neighbor as yourself" (Leviticus 19:18).

Gemachs, known as Jewish or Hebrew Free Loan Societies in English-speaking countries, were among the first institutions established by Jewish immigrants to the United States from Eastern Europe. Most gemachim were founded between 1880 and 1914 in communities where Jews settled, although some were established as late as 1940. The Hebrew Free Loan Society of New York, the oldest gemach in America, was established in 1892 when 11 men pooled their savings to establish it. They initially raised $95, which they loaned out in increments of $5 and $10. The society is still in existence today.

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