Ogen

About Ogen

Ogen is a nonprofit social finance organization in Israel that provides affordable credit and financial mentoring to underserved populations. Founded in 1990 by the late Professor Eliezer David Jaffe, a key figure in Israeli social work and philanthropy, the organization was initially named the Israel Free Loan Association (IFLA). Its establishment was a response to the mass immigration of Russian and Ethiopian Jews in the late 1980s, aiming to support their integration. In 2018, IFLA rebranded to Ogen, the Hebrew word for “anchor,” to better reflect its mission of supporting marginalized families, small businesses, and nonprofits.

The organization operates as a social lender, providing interest-free and low-interest loans to individuals, small businesses, and nonprofit organizations that are often overlooked by the traditional banking sector. Ogen's business model is a blend of philanthropy and capital market mechanisms. It raises funds through donations, impact investments, bonds, and bank credit lines to finance its lending activities. This structure allows Ogen to offer loans with significantly more favorable terms than commercial lenders. The organization also offers extensive financial guidance, mentoring, and support, leveraging a network of over 1,300 professional volunteers.

Since its inception, Ogen has disbursed over 83,000 loans, totaling more than NIS 2.3 billion. In 2020, as an interim step toward becoming a social bank, Ogen launched the Ogen Social Loan Fund under a license from Israel's Capital Markets Authority, which enabled it to provide larger, low-interest loans. The organization has demonstrated a consistently low loan default rate of just 0.7%, highlighting the effectiveness of its model. Ogen frequently partners with Israeli government ministries on initiatives to promote financial health, homeownership, and business growth. In times of national crisis, such as the COVID-19 pandemic and various military conflicts, Ogen has acted as a rapid financial responder, providing emergency loan funds to affected families and businesses.