Now that the importance of the mitzvah of doing kindness with one’s possessions has been clarified — and how the Evil Inclination interferes with the person, using all sorts of excuses — it is proper that the person make the test easier to overcome. This can be done by setting aside a portion of one’s money and earmarking it for this mitzvah of kindness, to lend it out to those in need.
It is better to give many small loans to many people rather than lending the entire fund to one individual. This is because with each loan the person fulfills an additional mitzvah of the Torah. Another advantage of giving many small loans is that it gets the person accustomed to good traits. Therefore, if a person gives out many loans, even if they are for small sums, he acquires a good [nature] for himself and it elevates and sanctifies his soul.