regulation: Non-bank credit companies are allowed to give loans to youngsters ages 18-21

New regulations will allow non-bank credit companies to give credit to young people aged 18-21 as well, and not just over the age of 21 as currently stipulated in the law. The move was led by the Minister of Finance, Israel Katz, and the Deputy Minister of Finance, Yitzhak Cohen, together with the Commissioner of the Capital Market Authority, Dr. Moshe Barkat. The aim of the move is to expand the services provided to young people who have reached the age of 18 while ensuring their protection while understanding that this is still a relatively young population.
The loans will be given mainly for needs like tuition financing or medical treatments, and also for general but limited needs. This move actually increases the competition in the field of credit in relation to this population, since today young customers can receive credit services only from the banks.
"The Minister of Finance, Israel Katz, said:" These young people, who are already serving in the army, should have regulations expanded in their favor and given the opportunity to take out non-institutional credit, with the appropriate restrictions, which will open up additional financial services. "
Dr. Moshe Barkat, who is in charge of the capital market, said: "The regulation in this matter is intended to address the young public in Israel and an alternative to bank credit, along with the important element of maintaining the economic security of the young people."