Since its founding in 1990, the nonprofit organization has lent NIS 1.2 billion in interest-free loans to 62,500 households and small businesses in the country.
By AARON REICHloans without a bank account(photo credit: PR)
Small businesses, first-time homebuyers and non-profit organizations will soon be able to access fixed low-interest loans from Ogen – Social Loan Fund, which is currently in the advanced stages of becoming Israel's first nonprofit social bank, according to a press release issued Ogen on Wednesday.Ogen, a public benefit company wholly owned by its parent charity Ogen – Free Loan Fund and is part of the Ogen Group, is the first of 2,500 organizations to receive an expanded Credit Provider License license from the Finance Ministry's Capital Markets Authority.Since its founding in 1990, the nonprofit organization has lent NIS 1.2 billion in interest-free loans to 62,500 households and small businesses in the country.Today, the Ogen Group is comprised of four nonprofit organizations with the shared goal of creating financial empowerment and providing accessible and affordable credit for disadvantaged people, as a well as for small businesses and nonprofits. At the time of writing, the group's capital base stands at nearly NIS 300 million, which the establishment of the social loan fund is set to significantly increase."Receiving our license from the Capital Markets Authority is an important milestone," said Sag Balasha, CEO of Ogen Group. "I am pleased that Ogen is the first to receive the expanded license in its new format, which required the submission of numerous documents, meticulous planning, and a methodical business strategy.""The underlying motto that guides Ogen's credit activity is providing 'life changing loans,'" said Ogen Group chairman Ofir Ozeri. "This conveys our commitment to making a positive change in people's lives and for Israeli society in general. The sole profit that motivates us is the positive impact we’re able to make. because we care and our only profit is our borrowers' personal and social gain."Small business loans through Ogen go up to NIS 200,000 with a 5% fixed interest rate secured by one guarantor and requires a professional business plan. For families purchasing their first home, loans are available up to NIS 100,000 with 5% fixed interest. For nonprofit organizations, Ogen provides low-interest bridge loans to help organizations waiting for government funding.
