Procedures for obtaining an interest-free loan for Registered Non-Profit Associations (Registered Amutot)
Loans are designated for public institutions and for non-profit associations providing services to the public in the field of welfare, education or health, for the purpose of purchasing permanent equipment vital to the institution or NPO or as a bridging loan.
Procedures and criteria:
1. The registered amuta must present the following:
- Confirmation from the Registrar of Amutot
- Confirmation of status as a Public Institution [Mossad Tziburi]
- Confirmation from the Income Tax Authority of lawful account books and bookkeeping pursuant to the Law of Transactions of Public Bodies
- Audited trial balance for the last calendar year in addition to an authorized (but unaudited) trial balance for the current year
- Updated obligo report for bank accounts as of the date of submitting the loan application
- Confirmation of the amuta’s authorized signatories, who will be personal guarantors for the entire loan amount.
- Explanation of the fundamental nature of the amuta and purposes of the loan
- Specific details of the amuta’s financing sources
- Price quotations for the equipment the loan is intended to finance
2. Loans are up to NIS 25,000.
3. Loan applications will be processed only if submitted on an original application form or a form downloaded from the IFLA website, together with legible photocopies of the documents listed above. The Loan Committee will only process applications completed in full.
4. 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.
5. After authorization of the loan a letter detailing instructions and conditions will be sent to the applicant, who must adhere precisely to all of the directions referring to guarantors’ signing and all other terms and conditions.
6. Loans are repaid through standing bank orders in regular monthly payments.
7. Loan applications must be accompanied by a non-refundable check for NIS 20 for verification of good standing order of applicant’s current bank account.
8. A one-time service charge is to be paid upon receipt of the loan, as detailed in the approval letter.
Click here for application form (in Hebrew)