Please note: advisory meetings and the service itself are provided in Hebrew only. These guides are here so you can read and understand the topic in your own language.
Non-bank loans are given by bodies that are not banks: credit card companies, insurance companies, funds and private lenders. Some are completely legitimate, and some are very expensive.
When can it fit?
- A short top-up when the bank does not respond quickly.
- Interim financing in complex real estate deals.
- When the banks refuse and there is a clear repayment plan.
Why is it usually expensive?
These lenders take a higher risk and price it into the interest rate and fees. The difference from a bank can be very significant.
How to compare properly
- Effective interest rate – including all fees, not only the "nominal rate."
- Total payments until the end of the loan.
- Early repayment fees – can you get out?
- Collateral – are you pledging an apartment, a car or your salary?
Warning signs
- A promise of "instant approval for everyone."
- A demand for payment up front before you receive the loan.
- A lack of transparency about fees.
- Pressure to sign quickly.
Check that the lender is licensed as a credit provider by the Capital Market Authority.
Elia's tip: Before taking a non-bank loan because the bank refused, first understand why the refusal came. Sometimes a small fix brings you back to the bank, at a much lower rate. After a mortgage rejection
This article is general information and is not personal advice or a commitment. Rules, interest rates and taxes change from time to time, so check the current situation and your own figures before any decision.