In 2003 KIEDF initiated the first micro-credit loan fund. The Fund provides security free loans to low income women entrepreneurs facing barriers to credit from regular banks and other philanthropic loan funds.

Thousands of Israeli women are establishing their own business activity through the microcredit loan fund

Loans of up to $5000 are given through a guarantee loan fund in cooperation with Bank Hapoalim. The loans are given for a three year period with a below market interest rate.

Loans support a wide variety of businesses, most operated out of home. Initially the fund was operated by Economic Empowerment for Women from Haifa. In 2006 the fund expanded across the country and is currently operating out of three centers in the north, center and south of Israel.