The dilemma
Many savers reach a point when their קרן השתלמות is available for withdrawal and they need money. Withdrawing may seem natural, but it reduces the savings balance and ends the withdrawn amount’s potential for further growth.
A possible alternative is a loan against the fund, if the fund manager allows it and under conditions that suit the saver. Thus the fund remains invested, but a new obligation is created.
When can a loan make sense?
A loan can be suitable when the need for money is temporary, when there is a clear ability to repay, and when the loan terms are good relative to other alternatives.
But it is not a magic solution. If there is no ability to repay, or if the market goes down and savers are stressed, the loan may become a burden.
How to examine both options
A proper comparison includes interest rate, repayment period, monthly flow, possible tax, the purpose of the money and the impact on future savings.
In many cases it is useful to receive a written proposal from the fund manager and compare it to alternatives in the bank or other sources. The decision should be numerical and not emotional.