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Loan for Debt Repayment

A loan provided to assist covering debts that became difficult to repay following the loss

Who is this page for?
    Bereaved Parents
    Widows and Widowers

What is a loan for debt repayment?

A loan provided to parents and widows who face debts or financial distress, where there is a connection between the family bereavement and the difficulty to repay the debt, for example: Lower household income, difficulty managing a private business, or debts to institutions related to the business.

The loan is intended to cover debts with official and regulated entities only (banks, authorities, government bodies, and the like).

Eligibility for this loan is one-time and can be granted within 3 years from the loss or from the day of recognition as a bereaved family.

What can you receive?

A loan of up to 68,570 ₪Last updated on 1.1.2026.

Additional details regarding the loan:

  • The loan is provided at a fixed interest rate (not indexed). The interest rate changes every 5 years. Loan interest rates are determined by the Accountant General and are updated quarterly.

  • In most cases, the loan repayment schedule is spread out over a period of 24 months. If you need to arrange the payments differently, you can request this from the welfare worker. 

  • The loan terms offered by the department may not differ significantly from the loan terms offered by other banks, so it is advisable to check and compare the terms before taking the loan.

  • The monthly loan repayment amount will be deducted from the benefits slip. 

In cases of a second loss

Bereaved parents, widows and widowers experiencing a second loss are eligible for extended assistance:

  • Second loss within three years - automatic eligibility for a double loan amount (200%).
  • Second loss after more than three years - please contact your district office so we can review your eligibility.

How to apply?

For the review of your eligibility for a loan, please submit through your account:

  1. Letter of application 
    Signed by the eligible individual. An application for both bereaved parents must be submitted and signed by both of them. 

  3. Details of your financial situation
    Details of bank account statements for the three months prior to submitting the application, and details of deposits and savings. 

  4. Tax assessment copy - for business owners
    If you own a private business, you must attach a copy of the tax assessment submitted to the tax authorities in the two years preceding the application submission. 

  5. Documents indicating the amount of the debt

If necessary, we will contact you to request additional documents to review your application.

My account

Stages of loan approval

  1. In the first stage, you need to send us the application and documents through your account. 

  2. The application will be reviewed by a welfare worker, who will provide a response within 26 business days regarding eligibility for the loan. 

  3. Transferring your details to the bank - after receiving the details, the bank will send you a notification that the loan can be received at any branch of the First International Bank, at your choice. 

  4.  The referral for the approved loan will be valid for 4 months only, and the loan must be utilized at the bank before it expires.

  5. Loan utilization - the bank will notify you via SMS about the transfer of the loan to your account. From this stage, the loan repayment amount will be deducted monthly from your benefits.

Loan guarantee

In some cases, it is necessary to present guarantors to the bank for the loan. The guarantors will commit to repaying the loan to the bank in case you are unable to pay.  

The guarantors can sign the guarantee at any branch of the bank, not just the branch where you chose to apply for the loan. 

Modification or cancellation of the loan

If you need to cancel an approved loan, or shorten or extend the repayment term, please inform the welfare worker.

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