The work framework you are in allows you security and significant financial backing. Within the same framework, it is possible to realize loans from provident funds, advanced study funds, and pension funds, when these are considered worthwhile, certainly if you act proportionately and responsibly, which will allow you to repay the loan without leading to significant damage to your savings.
A Positive Trend of Change – Non-Bank Financing
“Mani Group” is one of Israel’s leading companies in the field of non-bank financing. Non-bank loans, of course, allow for healthier competition in the loan market. It makes it unnecessary for many to choose the risky channels of the gray market and allows for more convenient lending channels within the framework of the same competition.
The non-bank financing offered by the “Mani Group” is an expression of the economic situation that exists in Israel in recent years. This relates to the erosion of wages, alongside a steady increase in current expenses, and the fact that the cost of living in Israel is one of the highest in the OECD countries. This financing includes the possibility of making loans from provident funds, pension funds, study funds, and more.
Conditions for a loan
The main and significant condition for receiving a loan from funds and funds includes savings of at least three years. The interest payment in the framework of these loans is considered low compared to other alternatives in the loan market, with an interest rate ranging from 1% to 3% as of 2021.
The process of obtaining a loan is considered simple. It does not include guarantors, and during the loan period and afterwards, the borrower can continue to deposit money in the same fund and thus also enjoy the various tax benefits that accompany it.
What is the reason for the low interest rate?
As part of these loans, a borrower who does not meet the repayments allows the borrower to withdraw the existing funds from his pension funds. Hence, the risk for the lender is virtually nil, and hence the interest rate is low. On the other hand, borrowers must take into account that the inability to repay the loan will cause significant damage to their pension funds, up to a maximum of 70% of the pension fund.
Loan from a study fund
One of the tools that many experts in the field of loans recommend is to make a loan from a study fund. A study fund, in contrast to other pension savings, is a medium-term fund of 3-6 years, with the tax benefits of this fund being expressed as in long-term savings, where there is no tax on profits, withdrawals, and the ability to enjoy tax benefits on a deposit, even if the employer is the one who made the deposit.
In cases where this fund is liquid and allows you to make a loan from it, this is definitely recommended in quite a few cases. At the same time, the execution of a loan on the study fund must be done in a way that will allow the fund to continue to enjoy the same benefits that we mentioned, alongside our ability and that of the employer to continue to deposit in the same fund, thus ensuring our financial security for the medium term, and certainly when making the repayment on that loan.
Sources of financing for people in the framework of the work against which they can receive loans – key points:
– Allows the execution of a loan not within the conditions of the bank and credit companies.
– A loan is possible from provident funds in which we have saved for at least three years.
– Significantly lower interest rates.
– A loan does not include guarantors.
– During the loan period and afterwards, it is possible to continue depositing funds in the fund.
– In most cases, the loan is granted up to 70% of the scope of the principal from which the loan was made.
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