LOAN FROM ISRAEL FOR FOREIGNER AND NON-RESIDENT
In Israel, a loan for foreigner non-resident is defined by a lending facility granted through Israeli banks and lenders in favor of a borrower who hasn’t got the Israeli citizenship neither an address in the country.
In Israel, the loan for foreigner non-resident is dedicated to many people and families who settle by applying locally for a mortgage or consumer loan, so many Israeli credit companies are online and offer advantageous conditions of financing.
In Israel, the loan for non-resident and being non-Israeli can benefit borrowers of foreign nationality thanks to subsidized rates (zero rate) by the State, particularly with regard to Israeli mortgages for first-time buyers but and of course, not only for home loans but personal loans as well.
In Israel, the loan for foreigner non-resident is accessible through Israeli banks and loan brokers who will ask to provide with the following documents: passport and ID or driver’s license, last 3 pay slips and finally the most recent 3 bank statements, noting that resident foreigners in Israel have an easier access to Israeli loans than non-residents.
WHICH LENDERS IN ISRAEL GRANT A LOAN TO NON-RESIDENTS ?
Yes—foreigners and non-residents can obtain loans in Israel, particularly mortgages, though banks apply stricter conditions than those for residents. Here’s a clear summary of the main options and lenders:
Mortgages for Non-Residents (Foreign Buyers)
- Israeli banks do offer residential mortgages to non-residents, but typically up to 50% of the property’s value—compared to up to 75% for residents.
- Requirements usually include:
- Opening an Israeli bank account,
- Passport, proof of income (last 3 years), bank statements from home country, and asset declarations, often with notarized translations.
- Banks may offer foreign-currency mortgages (USD, EUR, CHF, GBP, CAD) that align with your income currency and help mitigate exchange rate risks.
- Monthly payments must not exceed approximately 30–33% of income.
Commercial & Business Loans
- If you’re an entrepreneur or business owner with a company registered in Israel (e.g., WFOE or Israeli subsidiary), banks may provide business loans to that entity—even if you’re not a resident personally.
(Understanding that this would fall under business lending rather than direct personal loans).
Specialized Alternative: Interest-Free Community Loans (“Gemach”)
- Gemach refers to traditional community-based interest-free loan funds operating within Jewish communities in Israel.
- These loans are typically small-scale (e.g., up to NIS 20,000 for individuals; NIS 90,000 for small businesses) and may be available regardless of residency, depending on community structure.