Banking in Israel

Welcome to our page dedicated to Banking in Israel, a service we offer as part of our accounting firm.

We're delighted to introduce you to our bank credit service in Israel, designed to help you turn your financial plans into reality.

Talk to the Experts

Introduction to Banking in Israel

At Dray & Natco, we understand the importance of obtaining bank credit for your personal and professional projects. Whether you're looking to buy a property with a mortgage (Mashkenta), finance personal projects, or get assistance with business loans, our team of experts is here to guide you every step of the way.

Banking in Israel

Comparison of individual and corporate loans in Israel

It is essential to note that in Israel, bank loans for individuals and loans for businesses differ significantly in terms of conditions, eligibility criteria and financial objectives.

Bank credit in Israel for individuals :

For individuals, bank loans in Israel are often used for personal needs such as buying a house, a car, financing education, leisure and vacations, or to meet unforeseen expenses.

Interest rates and repayment terms are generally tailored to individual needs, and eligibility criteria may vary depending on the bank and type of credit. Individuals are assessed on the basis of their credit history, income and repayment capacity.

Bank credit in Israel for professionals :

Loans for businesses in Israel are designed to meet the financial needs of companies, whether to finance investments, ensure growth, acquire equipment or manage cash flow. Interest rates and conditions are generally tailored to business needs, and companies are assessed on the basis of their sales, balance sheet and business plan. Guarantees are often more flexible, and may involve business assets owned by the company or personal guarantees provided by the shareholder.

As a tax consultancy in Israel, we understand the unique credit needs of individuals and businesses. We're ready to guide you in determining the type of credit that best suits your financial goals, whether you're an individual looking to fulfill a personal dream or a business looking to expand its operations.

Our expertise in bank credit means we can support you every step of the way, making sure you get the best possible terms and conditions for your specific situation.

Buying an apartment in Israel: Is it better to take out a personal or business loan?

When it comes to buying a home in Israel, individuals are subject to the Mortgage Law, which means they must comply with certain specific regulations and restrictions.
This may include requirements for down payments, stricter credit checks, and other rules designed to protect both borrowers and lenders.

More flexibility for businesses, shorter credit periods.

Companies, on the other hand, do not fall within the scope of this law when taking out loans. They can benefit from greater flexibility in terms of credit conditions and guarantees, which can be an advantage for their financial needs.

The deposit rate for a company is 30% (sometimes you can even finance up to 100% of the loan), while a private individual will always be subject to a deposit of 50% (except for financing a first apartment).
However, this does not mean that companies are exempt from regulations, but rather that they operate within a different legislative framework than private individuals.

Our team of experts in Israel is well-versed in the legal and regulatory aspects surrounding bank loans for individuals and businesses. We are ready to guide you in understanding these distinctions, and to help you make the right decisions to achieve your goals, whatever they may be.

Types of bank credit in Israel

A variety of bank loans are available in Israel to suit specific needs. Among the types of credit available, you'll find mortgages for the purchase of real estate (Mashkenta), personal loans for various needs (Kol Matara), business loans to finance commercial projects (Alvaa Isskite), and many others. Our expertise covers all these areas, offering you a complete range of credit solutions.

Advantages of bank credit in Israel

There are many advantages to obtaining a bank loan in Israel. It allows you to invest in real estate, carry out important projects, or manage urgent financial needs.

As a firm of chartered accountants, we'll help you make the most of these opportunities by providing personalized advice tailored to your situation.

Eligibility for bank credit in Israel

Each bank may have its own eligibility criteria for granting credit. We will guide you on how to meet these requirements to increase your chances of a successful credit application. Our team of experts will analyze your financial situation and provide you with personalized advice to optimize your chances of obtaining bank credit.


Who better than a chartered accountant to know your financial situation and give you the best investment advice?

Application process

The process of applying for bank credit in Israel can be complex. At Dray & Natco we will accompany you every step of the way, helping you to prepare the necessary documentation, fill in the forms and submit your application to the appropriate banks. Our team will take care of all the paperwork to save you time and make your credit application easier.

What are the interest rates in Israel?

Interest rates in Israel can vary depending on several factors, including the type of loan, the term of the loan, the lending bank, and market conditions. Here's a general overview of common interest rates in Israel:

1. Bank of Israel key rate

The key rate set by the Bank of Israel has a significant influence on interest rates in the country. Variations in this key rate can have repercussions on the interest rates charged by banks, particularly on the PRIME


The "Prime" interest rate is calculated by the banks on the basis of the Bank of Israel's interest plus a margin determined by them on the basis of this interest.

In practice, today all banks calculate the Prime rate at around 1.5 % above the Bank of Israel interest rate. Banks are not subject to the advertised Prime interest rate, but this is a commercial and strategic choice.

3. Mortgage interest rates

Mortgages in Israel have variable interest rates depending on market conditions and loan types. Interest rates are available for both fixed-rate and variable-rate mortgages. Rates also vary according to the term of the loan.

4. Fixed rate, non-indexed

This is a rate where there is no change in the monthly repayment, so there are no risks or surprises when it comes to monthly repayments. Peace of mind and stability throughout the term of the loan.

It's the French equivalent of the fixed APR.

But you have to pay for peace of mind: the interest that can be charged on this option is relatively high compared with other options, due to the risk the bank takes of a sharp rise in the consumer price index and the loss of profits it could receive as a result of the coupling (this is often the most expensive route over the long term).

One disadvantage is that borrowers do not lose out in the event of a negative change in the interest rate, but they do not benefit from a fall in the interest rate (unless they make an early repayment, in which case there will be a repayment charge. On the other hand, the mortgage is not linked to the index, so if the economic situation causes the index to rise, those who have taken out a mortgage with a fixed interest rate that is not linked will not suffer.


At present, we recommend using the non-indexed fixed rate when your income does not allow you to choose Prime.

5. Interest rates on business loans

Companies borrowing in Israel can also benefit from variable or fixed interest rates, depending on market conditions, the size of the company and the type of loan. Business loan rates can be competitive, especially for well-established companies.

We'd like to emphasize the importance of buying into a company, as it offers a number of tax advantages. One of the main advantages is that you don't have to distribute the dividend, so you save on dividend tax. Indeed, when you buy shares as a company, you become the owner of the company and benefit from the profits generated. However, you are not obliged to distribute these profits as dividends to shareholders, which means you are not subject to dividend tax. This tax saving can be considerable, and represents a significant financial advantage for companies.

Buying through a company also offers other advantages. For example, you can benefit from the leverage effect, which can amount to up to 100% of the purchase price.

6. Savings rate

Interest rates on savings accounts and term deposits in Israel vary according to the offers of different banks. They may be subject to fluctuations in response to decisions by the Bank of Israel.

It is important to note that interest rates in Israel can change over time in response to economic developments and the monetary policies of the Bank of Israel. When considering a loan or financial investment, it is advisable to check current rates with local banks for precise information on the rates applicable to your specific situation.

As a tax consultancy, we are ready to help you understand these rates and guide you in finding the best conditions for your financial needs.

Loan terms

Bank loans in Israel offer a variety of repayment term options. Our team of experts will advise you on the term that best suits your needs and repayment capacity. Whether you want a shorter term to pay off your loan quickly, or a longer term to reduce your monthly payments, we'll help you find the best solution.

Credit Insurance

Credit insurance plays an essential role in protecting borrowers in the event of unforeseen circumstances. At Dray & Natco, we have partnerships with several insurance companies so you can benefit from the best cover at the best price.

Fees and related costs

In addition to interest, additional costs such as administration fees may be associated with a bank loan. We will inform you of all the costs associated with your credit, so that you can make an informed decision.

Our team will provide you with a transparent overview of the fees and costs associated with your credit to avoid any unpleasant surprises.

Compare bank offers

A wise approach is to compare credit offers from at least three banks to obtain the most advantageous rates. This will enable you to make an informed decision by identifying the most competitive credit terms, whether for mortgages, personal loans or business loans.

Our tax consultancy is here to assist you in this comparison process, helping you to evaluate the offers from different banks and choose the one that best meets your financial needs.

Credit Restructuring

If you have multiple debts, our credit repurchase service can help you consolidate them into a single loan, reducing your monthly payments and simplifying your financial management.

Why restructure your credit?

1. Lower monthly payments

Credit restructuring enables you to combine several loans or debts into a single loan. This can lead to a reduction in monthly repayments, which can be a financial relief for borrowers.

2. Simplified debt management

By consolidating debts, borrowers now have just one creditor to deal with, simplifying the management of their financial obligations. This can reduce the risk of missed or late payments.

3. Interest rate reduction

Credit restructuring can result in a lower overall interest rate, which can reduce the total cost of repayments.

4 Improved budget control

With lower, more manageable monthly payments, borrowers can better plan their budget and have extra cash available for other financial needs.

5. Avoid over-indebtedness

For those at risk of falling into over-indebtedness, credit restructuring can be a solution to avoid this precarious situation.

6. Loan term optimization

Credit restructuring can enable the loan term to be adjusted to better suit the borrower's financial situation. This can be useful for shortening the repayment period or extending it as required.

7. Negotiation with creditors

During credit restructuring, it is possible to negotiate more favorable repayment terms with creditors. This may include interest rate reductions or debt reduction.

8. Credit protection

Restructuring can help protect the borrower's credit rating by avoiding late payments or defaults.

9. Financing new projects

By reducing monthly expenses, restructuring can free up funds for new projects or investments.

10. Long-term cost savings

By obtaining better credit terms, borrowers can make significant savings on the overall cost of their debts.

Case Study

To illustrate our expertise, we share here some real-life examples of customers who have benefited from our credit repurchase services.

Case study 1: Reducing monthly payments for a family

We recently helped an Israeli family who had accumulated several personal loans and credit cards over the years. High monthly payments and high interest rates were making it difficult for them to manage their finances. After a thorough assessment of their financial situation, we recommended a credit restructuring.

By consolidating their debts into a single loan, we were able to significantly reduce their monthly payments, freeing up some of their budget for other needs. This family saw an immediate improvement in their financial situation and a reduction in debt-related stress.

Case study 2: Loan consolidation for a growing company

A fast-growing Israeli company had accumulated several commercial loans to finance its expansion. Varying interest rates and high monthly payments were straining cash flow and hampering growth. We worked closely with the company to consolidate its loans into a single loan and negotiate more favorable terms. This enabled the company to improve its cash flow, reduce borrowing costs and focus on future growth projects.

This case study illustrates how credit restructuring can be a powerful tool for growing companies.

Case study 3: Debt reduction for an Israeli individual

An Israeli individual was in debt, with several personal loans and high-interest credit cards. Monthly payments were becoming unsustainable, and he was at risk of late payments. We devised a tailor-made credit repurchase plan, consolidating his debts into a single loan at a lower interest rate. This enabled him to reduce his monthly payments, simplify the management of his finances and avoid a situation of over-indebtedness.

Tips for improving your credit rating in Israel

A good credit rating is essential for obtaining the best credit terms.

At Dray & Natco, we'll give you practical advice on how to improve your credit rating and increase your chances of obtaining advantageous bank credit. We'll help you understand the factors that influence your credit rating, and provide you with strategies to strengthen your credit history.

Confidentiality guarantee

We understand the importance of keeping your personal information confidential. We are committed to treating all your data confidentially and securely. Rest assured that any information you share with us will be protected and used only for the purposes of your bank credit application.


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Our offices in Israel

Our consultants in Tel Aviv

English speaking accountants in Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Phone number: 03-9446635
Fax: 03-9494682
Email: office@cpa-dray.com

Our consultants in Jerusalem

English speaking accountants in Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Phone number: 02 631 9000
Fax: 02 631 9005
Email: office@cpa-dray.com