Loans for adults or children with disabilities or special needs

Procedures for obtaining an interest-free for adults or children with special needs or disabilities

At the Israel Free Loan Association (IFLA), we understand the challenges faced by people with disabilities and their families. This type of loan is designated especially for Israeli citizens – families raising a child with disabilities or special needs (under age 21) or adults with disabilities or special needs, such as:

  • Permanent physical disability
  • Deafness
  • Blindness
  • Developmental disability
  • Cerebral Palsy
  • Tumors
  • Chronic childhood diseases which require daily treatment and impair normal development
  • Autism
  • Childhood ADHD
  • Birth defects which impair normal functioning and require medical treatment or unusual para-medical treatment

The details:

1)      This loan is intended for the purchase of necessary equipment or medications and the cost of procedures which are not covered by health insurance

2)      The maximum amount for this loan is 30,000 ILS, with a repayment plan of monthly payments of 300 to 600 ILS, agreed upon by IFLA and the borrower and in accordance with the amount of the loan and the net family income.

3)      Adults with physical disabilities who live at home may also apply for this loan for needs associated with the disability, such as equipment. Decisions are made on a case-by-case basis.

4)      Applicants must be Israeli citizens living in Israel, aged 22-67.

5)      The applicant must have a net monthly income of NIS 3,000 – 15,000  and have been employed continuously for at least one year by the same employer, or be receiving income supplement payments of at least NIS 3,000 each month. Applicants who are self-employed should provide documentation from a certified accountant or a tax adviser describing net income from the last 12 months.

6)      An applicant whose bank account is restricted or was restricted in the past will have to wait one year from removal of the restriction. Anyone who has filed for bankruptcy, has a file at Hotzaot LePoel, has a warning registered against his name in the banking system or has a lien registered on his bank account, is not eligible for a loan from IFLA, nor to sign as a guarantor for another applicant.

How to apply for the loan:

1)      Complete the loan application, which can be found here.

2)      Please indicate how you plan on using the money from the loan, such as for equipment, and include the price proposal for the expense as well as the approval from the Ministry of Health reflecting the amount they are covering.  If the loan is for the acquisition of a car, please include the confirmation of coverage from Bituach Leumi and the details of registration of the previous car. Please write in detail how you plan on funding any expenses beyond those covered by the loan.

3)      Please include the following documents with the loan application:

  1. Clear photocopies of the identification cards of the person or couple requesting the loan and the child (including the addendum with the address and names and date of birth of children)
  2. Medical confirmation of disability
  3. Copy of the most recent pay stub of the person requesting the loan and/or documentation for all income (including pensions and scholarships) of spouse and child
  4. Confirmation of disability payment from Bituach Leumi (as well as mobility stipend, if relevant)
  5. Details of the potential loan guarantors (receipt of the loan requires the signing of two guarantors)
  6. Bank details of the signatory on the standing bank order

4)      Loan applications must be submitted on an original application form or a form downloaded from the IFLA website. Only applications completed in full will be considered.

5)      Send the loan application, these documents, and a non-refundable check in the amount of 20 ILS payable to the Israel Free Loan Association to cover the cost of a credit check of the borrower’s bank status.

6)      The Loan Committee may confirm or reject any application and decide on the amount of the loan without having to provide reasons for the decision.

Once the Loan is Approved

1)      Loan approval is sent in the mail together with details and instructions. Loan approvals are not indicated by telephone.

2)      After a loan is approved, two guarantors age 22 – 67 (absolutely no guarantor over 67) must be signed on the appropriate form that is sent for this purpose. Guarantors must have a regular net income of at least NIS 3,000 per month, and have been employed at the same workplace for at least one year. A divorce/e, widow/er, single parent (with custody of child[ren]) must have one of the guarantors sign on the commitment form provided. Guarantors may sign in our office or at any branch of International Bank (Beinleumi) or any branch of the Postal Bank, as set out in detail in the directions accompanying the loan approval.

3)      Those awaiting loan approval or  current borrowers are not eligible to serve as guarantors. It is possible to be a guarantor for only one loan at a time. Spouses may not serve as guarantors for one another. Guarantors and borrowers may not share the same address. Those who receive their income from Bituach Leumi are not eligible to serve as guarantors.

4)      Anyone with a limitation on their bank account must wait  a complete year after the limitation has been removed to receive a loan. Anyone ho has filed bankruptcy or who has a collections file in their name, or who has a warning on their bank account is not eligible as a borrower or a guarantor.

5)      A one-time service fee is required at the time of receipt of the loan, as is indicated in the loan approval letter.

6)      Bounced loan repayment will result in a fee payable by the borrower.

Please read the above criteria carefully to prevent misunderstandings and unnecessary actions.

Interested to apply for an interest free loan? Click here for the request form.