Finding funding sources
The framework of work in which you are located allows you significant security and financial backing. Within the same framework, it is possible to realize loans from provident funds, advanced study funds and pension funds, which are considered worthwhile, certainly if you act in a proportionate and responsible manner, which will allow you to repay the loan without leading to a significant negative impact on your savings.
A positive trend of change – non-bank financing “Meny 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 lending market. For many, it makes it unnecessary to choose the risky channels of the gray market and enables more convenient loan channels within the framework of that competition. The non-bank financing offered by Meny Group is an expression of the economic situation that has existed in Israel in recent years. This relates to the erosion of wages alongside a steady increase in current expenses, and the fact that in Israel the cost of living is among the highest in the OECDhttps://www.calcalist.co.il/local_news/article/hy0011tn11oy 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 obtaining a loan from funds and funds includes savings of at least three years. The payment on interest in the framework of these loans is considered low compared to the other alternatives in the lending market, and as of 2021, the interest rate ranges from 1 percent to 3 percent. The procedure for obtaining a loan is considered simple. It does not include guarantors and during and after the loan period, the borrower can continue to deposit funds in the same fund and thus also enjoy the various tax benefits that go with it.
What is the reason for the low interest rate?
As part of these loans, a borrower who does not meet the repayments allows a borrowed entity to withdraw the existing funds from its pension funds. Hence, the risk for the lender is negligible and hence the interest rate is low. On the other hand, borrowers must consider that the inability to repay the loan has a significant negative impact on their pension funds, at a maximum rate of 70% of the pension fund.
Loan from a study fund
One of the tools recommended by many experts in the field of lending is in making a loan from a study fund. A study fund, compared 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, when there is no tax on profits, on withdrawal and in the ability to enjoy tax benefits on deposit, even if the employer is the one who made the deposit. In cases where this fund is liquid and allows making a loan from it, this is recommended in quite a few cases. At the same time, making a loan on top of the study fund should be done in a way that will allow the fund to continue enjoying the same benefits that we mentioned, alongside our ability and that of the employer to continue depositing in the same fund and thus ensure our financial security for the medium term and insure when repaying that loan. Sources of financing for people in the framework of the work against which they can receive loans
main points:
–Allows making a loan not within the terms 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 term of the loan and after it, it is possible to continue depositing funds in the cash register.
–In most cases, the granting of the loan is up to 70% of the principal from which the loan was made.
Are you interested in examining, together with our experts, the possibility of such funding?
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