Students in Israeli Colleges, Universities, and Career Training Courses
Procedures for obtaining an interest-free loan for students in Israeli colleges & other higher academic institutions.
Loans are designated for Israeli citizens who are students in colleges and other academic institutions in Israel.
- General Academic Loan – Loans up to NIS 30,000.
- Drucker Family Student Loan for Students of Applied Sciences – Loans of up to NIS 20,000 each, totaling up to NIS 60,000 (an option to take a 20,000 each year for three consecutive years) with no requirement for a guarantor. For more information about the Drucker Student Loans read here (in Hebrew).
- Career Training Loans – Loans up to NIS 30,000 to those taking courses in varied subjects such as computers studies, nutritionist training, coaching, fitness instruction, complementary medicine and more.
Procedures and criteria:
1) The applicant must be a registered academic college student or up to 3 years following graduation, holding a Israeli citizenship, living in Israel and aged up to 67.
2) The applicant must have a monthly net family income of NIS 3,000-20,000 and at least one year of uninterrupted employment at the present workplace, or confirmation of a monthly income (such as income supplement payments) of at least NIS 3,000. Applicants who are self-employed should provide documentation from a certified accountant or a tax adviser describing net income from the last 12 months. Married applicants should provide the same details regarding their spouse.
3) If the applicant earns less than net NIS 3,000 monthly or does not work at all, or has been at the current workplace for less than one year, or does not meet the age requirement, one of the applicant’s parents or another person can sign as a borrower together with the applicant, and cannot be included as one of the two required additional guarantors.
4) The amount of the loan is up to NIS 30,000 as per the following table:
Monthly Family Income (NET) Loan Amount (NIS)
3,000 – 8,000 Up to 20,000
8,001 – 20,000 Up to 25,000
12,001 – 15,000 (with 2 or more children under age 18) or 15,001-20,000 (with 4 or more children under age 18) Up to 30,000
5) Only those loan applications filled out completely and submitted on an original IFLA form or a form downloaded from the IFLA website will be processed. The applicant must attach legible photocopies of Identity Card (with address attachment), last pay slip and/or confirmation of income (including income supplement payments and scholarships) for both applicant and spouse – as well as the additional borrower, a current student card (photocopied, showing both sides) or documents confirming student status, documents confirming military or national service (and if no service was performed a note of the fact should be made on application) and bank details of the signatory on the standing bank order.
6) Applications must be sent to IFLA’s office by post or by messenger.
7) 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.
8) After a loan is approved, a letter is sent to the applicant, with detailed instructions about the guarantors and all other terms. Applicant must adhere to all of the instructions and terms. No decisions will be given by telephone. Applicant must arrive at the IFLA office in order to receive the loan.
9) After the loan is approved, the applicant must sign on the relevant form two guarantors, aged 22-67, each with a minimum net monthly income of NIS 3,000, and employment in the same workplace of at least one year. Guarantors may sign in the IFLA office or at any branch of Bank Beinleumi or any branch of the Postal Bank as set out in detail in the directions accompanying the loan approval.
10) 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 the IFLA nor to sign as a guarantor for another applicant.
11) A current applicant or borrower or guarantor of a current loan cannot be a guarantor. A husband and wife cannot be guarantors for each other, nor can they be guarantors for the same loan, or for two loans simultaneously. A guarantor cannot live at the same address as the loaner, nor can the two guarantors live at the same address.
12) Loans are repaid through standing bank orders in a maximum of 67 equal payments (300 – 600 ILS a month, in accordance with family net income).
13) Loan applications must be accompanied by a non-refundable check for NIS 20 for verification of good standing order of applicant’s active bank account.
14) A one-time service charge is to be paid upon receipt of the loan, as detailed in the approval letter.
15) The borrower must pay the service charge for any payment returned by the bank.
Please read the above criteria carefully to prevent misunderstandings and unnecessary delays.
Click here for application form and explanation sheet (in Hebrew)