Applying for Personal Loans
Procedures for obtaining an interest-free personal loan
Loans are designated primarily for families throughout Israel who are citizens of the country.
Procedures and criteria:
1) Applicants must be aged 22-67.
2) The applicant must have a net monthly income of NIS 3,000 – 20,000 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.
3) NEW IMMIGRANTS ONLY: New Immigrants (up to 2 years after their arrival) may still apply for a Personal Loan even though they do not have a full year of continuous employment by the same employer.
4) 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.
5) Applicants may apply for a loan of up to a maximum amount of NIS 30,000 – depending on their income levels and family size. Please note the following criteria for loan amounts between 20,000 NIS and 30,000 NIS.
|Monthly Family Income (NET)||Loan Amount (NIS)||# of Guarantors|
|3,000 – 8,000||Up to 20,000||2|
|8,001 – 20,000||Up to 25,000||2|
|12,001 – 15,000
(2 or more children under age 18)
|Up to 30,000||2|
|15,001 – 20,000
(4 or more children under age 18)
|Up to 30,000||2|
6) Loan applications must be submitted on an original application form or a form downloaded from the IFLA website, together with photocopies of the Identity Cards (including address attachments and names and birth dates of children) of both spouses, most recent salary slips and/or confirmations of income of both spouses, details of two guarantors (see below) and bank details of the signatory on the standing bank order. Only applications completed in full will be considered.
7) Loan applications must be accompanied by a non-refundable check for NIS 20 for the checking of the status of the applicant’s active bank accounts.
8) Applications must be sent to IFLA’s offices by post or by messenger.
9) 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.
9) After authorization of the loan, a detailed letter setting out the instructions and terms will be sent to the applicant. Loan approvals are not indicated by telephone. Applicant will have to arrive at the IFLA office in order to receive the loan.
10) 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.
11) A loan applicant or current borrower may not be a guarantor. Each guarantor may sign for one loan only. A husband and wife cannot be guarantors for each other, nor can they be guarantors for two loans simultaneously. Guarantor may not sign for a borrower living with them at the same address. A recipient of National Insurance Institute pension may not be a guarantor.
12) A one-time service charge is to be paid upon receipt of the loan, as set out in detail in the approval letter.
13) Loans are repaid through standing bank orders by a maximum of 67 payments (300 – 600 ILS, in accordance with family net income).
14) The borrower will be charged for bank charges incurred for any payment returned by the bank.
Please read the above criteria carefully to prevent misunderstandings and unnecessary actions.
Click here for application form (in Hebrew)