On the second day of the ongoing confrontation with Iran, most of Israel’s leading banks introduced new assistance frameworks aimed at easing financial pressure on households and businesses. With many reservists called up, employees absent from work, and some commercial activity temporarily halted, the banking system moved quickly to expand credit flexibility, defer payments and provide short-term liquidity.

According to updates from the country’s largest lenders, the measures focus on several core areas: interest-free or low-interest loans, temporary suspension of mortgage and consumer loan payments, automatic credit line increases, and targeted benefits for customers staying abroad.

At Bank Hapoalim, the relief package includes an interest-free loan of up to 40,000 shekels for customers who have been evacuated from their homes, repayable over as long as 40 months. Private customers may request a deferral of consumer loan payments for up to three months on balances of up to 250,000 shekels, subject to standard interest terms.

Reservists are eligible for a dedicated loan of up to 50,000 shekels at a rate tied to prime interest plus a small margin, with repayment periods extending up to five years. Small and mid-sized businesses can apply for designated support loans of up to 100,000 shekels, along with the option to postpone repayments on existing loans for up to three months.

The bank also announced special benefits for customers currently abroad, including automatic increases in credit card limits at no cost and travel-related discounts through affiliated programs. A dedicated support hotline has been established to handle urgent customer needs in addition to regular digital banking services.

At Bank Leumi, mortgage holders who deposit their salaries with the bank and are serving in reserve duty may freeze mortgage payments for three months. Both reservists and active-duty soldiers are eligible for a one-percent reduction in overdraft interest rates and exemptions from certain current account fees.

Business owners experiencing income disruption may defer loan payments for three months and apply for a 30,000-shekel loan repayable over up to 36 installments, with the option to begin repayment after a six-month grace period. Customers abroad can receive automatic credit card limit increases, and additional consumer discounts are being offered through the bank’s loyalty program. The benefits are valid for a limited period or until the emergency situation ends, subject to eligibility criteria.

Mizrahi-Tefahot Bank unveiled one of the more extensive mortgage-related measures. Customers whose homes were damaged may access loans of up to 150,000 shekels, or up to 70 percent of their property tax claim value, for a six-month term. Mortgage borrowers who were required to leave their homes may defer monthly repayments for up to six months without additional interest or fees. Other mortgage clients may request a one-month payment freeze under defined criteria.

Small businesses affected physically or financially can postpone repayments on existing loans for three months on cumulative amounts of up to 2 million shekels, without added interest or charges. Reservists are also eligible for temporary overdraft interest exemptions up to a defined ceiling, along with fee waivers. An international emergency hotline has been launched to assist customers outside Israel with transfers, credit adjustments and new loan requests.

First International Bank of Israel introduced interest-free loans of up to 12,000 shekels for career service members and reservists, with repayment periods of up to one year. Larger loans of up to 100,000 shekels are available to reservists at prime-based rates for extended terms. Small businesses can apply for loans of up to 50,000 shekels with the option to defer the first payment. Customers abroad may receive proactive credit card limit increases if nearing utilization caps.

Mercantile Discount Bank announced an automatic 15 percent increase in credit lines for small business customers, capped at 15,000 shekels, without interest or fees on the additional amount.

Meanwhile, Discount Bank is allowing small business clients to receive automatic credit line expansions of up to 15 percent, within defined limits, at no added cost. Private customers and small enterprises may defer loan repayments for three months on cumulative balances up to 100,000 shekels. Mortgage holders can freeze payments for up to three months without penalties, and the bank has extended the validity of certain preliminary mortgage approvals.

Across the banking sector, officials emphasized that all measures are subject to internal criteria and approval processes. Customers who fail to meet revised repayment schedules after deferral periods may incur standard late charges.

The coordinated response underscores the central role of financial institutions during periods of national strain. By expanding liquidity, reducing short-term obligations and offering targeted assistance, banks aim to stabilize household finances and support business continuity while broader conditions remain uncertain. Market observers note that the scope and duration of these measures may evolve depending on how long the current situation persists.