Gemilut chesed – an interest-free loan – is a specific Jewish form of mutual social assistance. In the interwar period, especially in the years 1929-1935, which brought a deep economic crisis, acutely felt by the Jewish population, the Interest Free Loan Offices spread throughout Poland, becoming perhaps the most popular type of social self-help institution.
The charity institution of the Płock Jewish community called the “Gemiłus-Chesed” Society for Granting Interest-Free Loans to Jewish Small Merchants and Craftsmen in Płock was of significant importance in solving financial problems of those Jewish merchants and craftsmen.
“Our association – we read in a letter to the Town Council of Płock of January 2, 1930 – aims to support the poor residents of our town with interest-free loans for repayment in long terms, up to 10 months. The last economic crisis, which affected the inhabitants of provincial towns the most, led to the complete impoverishment of the masses, and therefore society should come to these people with great energy and with great help. This help should be constructive, which would give the possibility of getting set up and returning to their old workplaces. So the best form of assistance at the moment is an interest-free and long-term loan. The experience of the last months has shown that the Credit Unions are successfully fulfilling their goal, as they help the declining Jewish population in their struggle for existence, especially this part of the population already in very difficult and difficult economic conditions. Allowing the already pauperized masses, who are a burden to society, to return to constructive work, apart from economic considerations, also has educational significance, as it directs them on the path to self-earning”.
The Loan Fund consisted of capital granted by the American Joint Distribution Committee, equity and interest-free contributions from various institutions and private individuals. The capital from the American Joint Distribution Committee was a fixed-term loan, repaid at a specified time and granted again.
In 1929, the “Gemiłus-Chesed” Society for the Granting of Interest-Free Loans to Jewish Small Merchants and Craftsmen in Płock granted 250 loans for a total amount of 17,188 zlotys. In 1930, 296 loans were granted for the amount of 26,300 zlotys. At that time, the Society had 450 clients and the number continued to increase. The seat of the Society was in the private premises of the president, who was the merchant Abram Lewin (he also paid for fuel and light from his own funds). The last chairman of the board of “Gemiłus Chesed” was Mojżesz Altberg.
