90% of Israelis have taken loans, according to new survey
Some 54% of secular people have taken bank loans, as opposed to only 36% of ultra-Orthodox people.
By TOBIAS SIEGALA bank employee counts Israeli Shekel notes for the camera at a bank branch in Tel Aviv(photo credit: REUTERS)
Ninety percent of Israelis have taken a loan at some point in their lives, according to a new survey by Chasdei Naomi, an organization dedicated to provide food and other basic needs for thousands of families throughout Israel.Chasdei Naomi was established 33 years ago, after a school bus driver noticed that some children were regularly missing supplies and food, and began anonymously delivering food and other necessities to those families. Today, comprised of a network of 20,000 volunteers, the organization is considered one of the largest welfare organizations in Israel and provides basic needs for 10,000 families.For what did they take these loans?According to the survey: 50% of the public have taken loans from the banks at least once, 32% from a family member, 21% from credit card companies, 18% from external banking companies and 15% from the gray market or friends.The older people get, the more loans they take, the survey showed. Some 54% of loans were taken by people over the age of 50.There are also differences between loans taken by secular and ultra-Orthodox Jews.Some 54% of secular people have taken bank loans, as opposed to only 36% of ultra-Orthodox people. According to the survey, ultra-Orthodox people take more loans from people they are close with (friends or family members) compared to other sectors.The data also shows that 71% of those who took a loan didn't understand the documents that they signed and 35% of them didn't receive an explanation regarding the risks of taking a loan in any way. The lack of understanding of the terms and implications of taking loans is higher among young people under the age of 29 and among those with lesser education. Moreover, lack of understanding is especially high among those with a lower than average income, compared to those with an average or higher than average income.The organization noted that financial education and familiarity with types of loans and their implications is important, especially among the less affluent, as they are more likely to be tempted to take a loan, which can easily turn into a debt.The survey was done without consideration for the current and additional economic difficulties people are experiencing due to coronavirus.Chasdei Naomi ran the survey via ZETATOOLS research center.
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