Non-Bank Credit Loan Balloons From 11.6 Million NIS to 60 Million NIS in Tel Aviv Court Case
A real estate entrepreneur sued non-bank credit company A.R.A.B. Bonus at the Tel Aviv District Court, claiming an 11.6 million NIS loan ballooned to nearly 60 million NIS.
A non-bank credit case reveals that an initial loan of 11.6 million NIS ballooned to nearly 60 million NIS within five and a half years, according to a lawsuit filed at the Tel Aviv District Court.
Real estate entrepreneur Yehoram Ben Shalom and his company Beshuva Ya'avad filed the legal action against the non-bank credit company A.R.A.B. Bonus. The plaintiffs are asking the court to rule that they are permitted to settle the debt at the amount determined in a previous compromise agreement rather than the 60 million NIS currently demanded by Bonus.
Origins of the Loan and Real Estate Collateral
The affair began in December 2019, when Bonus provided Ben Shalom with a nominal loan of 8.5 million NIS. Following three increases, the nominal loan reached 14.25 million NIS. However, after deducting upfront interest, the actual amount provided to the plaintiffs totaled 11.6 million NIS. The loans were secured by mortgages on real estate properties in Hadera, Migdal, and Shaked-Hinanit.
This is not the parties' first round in court. In December 2024, a compromise agreement was signed and given the validity of a court judgment, under which Bonus agreed to settle the debt for 24.8 million NIS, plus fees, annual interest of 14.5%, and VAT.
Dispute Over Default Terms and Escalating Debt
However, the agreement included a condition stating that in the event of a breach, Bonus would be entitled to revert to the "full debt amount" plus default interest. This is where the debt began to skyrocket.
"The plaintiffs claim that four enforcement proceedings have not yielded any collection so far, while the debt continued to grow by 3% per month."
In March 2025, Ben Shalom announced that he had secured financing to repay the full debt and requested a 30-day letter of intent. Bonus issued a letter stating that approximately 30.8 million NIS was required, but its validity was for one day only. Subsequently, the company resumed enforcement proceedings, and according to a calculation submitted in June, the debt stood at 59.9 million NIS.
The plaintiffs are asking the court to prevent the return to the full debt, compel Bonus to issue a letter of intent, and allow them to repay the debt according to the compromise agreement. A.R.A.B. Bonus, managed by Arik Goldian and founded in 1995, did not respond to the request for comment.
