Hi,
It's better to issue multiple small loans than one big loan. However, this may not be true where the big loan would meet an individual's total needs, and the small loans would not meed any recipient's total needs.
(Rambam to Pirkei Avot 3:15; Pitchei Choshen, Halvaah 1:8 and footnote 23)
Have a great day,
Mordechai
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