It is very common for Jewish communities to establish free loan societies, which offer interest-free loans to community members in need. The people in charge of these communal funds must be both wise and trustworthy. They should be able to check out each borrower, confirming both necessity and the ability to repay. They must also know how to deal with borrowers who are having difficulties repaying loans and decide when to insist on repayment and when to forgive the loan.
