Even though in certain aspects doing kindness (i.e., lending money) is great than giving tzedakah (charity), nevertheless, there are other lofty aspects to tzedakah that is not found with doing kindness. For when someone gives a loan to his fellow, it is not really an expense out of his pocket, since the money will eventually be returned, but when someone gives charity, he is completely letting go of his money. And since the Yetzer Ha-ra acts with greater force in that case, there is greater reward for overcoming it. Also, although a person who never accepted charity would rather take a loan because he is not accustomed to receiving alms, but for someone who has become accustomed to receiving alms, charity is preferable because he will never have to return the money. For these reasons one should endeavor to do their utmost with giving charity as well.
ה׳ באלול ה׳תשפ״א
Hashem says to you what is the best and what he demand from you, just do good deeds and Ahavas Chessed and meekness with Elokecha (Micha 6,8) 1