Is there a maximum amount that may be borrowed?

Yes. The maximum amount is calculated based on the price of the vehicle and the financial capabilities of the buyer when returning the loan.

Can anyone get a car loan?

No. Kidum uses a credit grading system to determine eligibility for financing and the rate of financing.

Why not take a loan from the bank?

1. At Kidum, the loan is given for a much longer period with fixed or varying interest rates, and up to 60 payments! Most banks will limit the number of payments to 48.
2. At Kidum, the financing for second-hand cars is up to 6 years. In most banks it is only up to 3 years.
3. At Kidum, your credit line remains intact, whereas in banks – taking a car loan reduces and limits the client’s bank credit line.
4. At Kidum, you can exchange the vehicle during the financing period, without having to first finish off the payments.

What is a lien on a car?

When you take a loan, you must procure collateral to ensure full payment of the loan. When it comes to car loans, the car itself may be used as collateral, making it more simple for the borrower. The lien is carried out by registering the car in the register of pledges and creation of a lien clause at the Ministry of Transport Licensing Department, so that it appears on the vehicle registration papers. Also, a note is made on the insurance policy of the car to endorse of the policy over to Kidum, in the event of a claim. When the vehicle is under lien, its owner can neither sell it nor use it as collateral.

How is the lien implemented?

New vehicle
The vehicle importer registers the lien after the car is released from customs, before the client receives the car. This is performed after ordering the car, when the bank has transferred the money to the importer, with a request for the car to be under lien on his behalf. The lien, which is registered at the Ministry of Transport Licensing Department, also appears on the vehicle registration.
Used vehicle
Kidum has a permit from the Ministry of Transportation to register liens on vehicles, and cancel liens, directly through the motor vehicle records computer system.

How is it possible to remove the lien?

The lien can be removed when the borrower has paid the loan fully either by making all of the loan payments, or paying one lump sum (early pay off). Kidum then gives the order for the removal of the lien at the Ministry of Transport Licensing Department. It is impossible to transfer ownership of the car prior to removing the lien at the Ministry of Transport Licensing Department.

Is it possible to exchange the car during the lien period?

In the event the client wishes to purchase a different car in place of the car with the lien, the company will transfer the loan to the new car, after registering the lien. Then it will be possible to remove the lien from the previous car.

What happens if the car is stolen from me during the lien period?

If the car is stolen, the insurance company must transfer the insurance company claim to Kidum, in order to pay off the loan. Kidum will cover the remaining loan payments and the client will receive the balance of the money from the insurance company.

What does opening a file mean?

Every borrower must pay a one-time payment for: expenses, registration of the lien, handling fees, etc., to the amount of 1.45% of the loan + NIS 400, which can be paid in 3 installments.