Bank Hapoalim (TASE: POLI), headed by Dov Kotler, announced this morning that it was setting up a NIS 500 million loan fund for self-employed people, in conjunction with self-employed representative organization Lahav. From tomorrow, self-employed people will be able to obtain loans of up to NIS 10,000 without visiting a bank branch.
The loans are intended for self-employed people with cash flow difficulties, and are in addition to the state guaranteed NIS 4 billion loan fund, in which Bank Hapoalim is also a participant. The interest rate on the loans will be prime plus 1.5%, which is similar to the rate on loans from the state fund. The loan period will be up to five years, with a grace period of six months.
The bank says that the loans will be digitally approved, and that approved loans will be credited to customers' accounts the following day.
Bank Hapoalim has also announced that customers whose income has been affected by the Covid-19 crisis can apply for a three-month deferral of repayments of any existing loan. Here too, there is no need to go to a bank branch. Most bank branches are in any case closed on the instructions of the government and the Bank of Israel.
Since the crisis began, all the major banks, and other financial institutions such as insurance company Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), have announced loans on special terms and grace periods for existing loans in order to assist customers whose income has suffered. These provide immediate relief, but they are not free gifts. The loans have to be repaid, and grace periods will mean higher repayments in the future. Such offers therefore need to be examined for their long-term effect on monthly income.
Published by Globes, Israel business news - en.globes.co.il - on April 6, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020