25. Is there a ban on candidates taking loans in relation to election campaigns?

"a) A candidate may receive a loan from a banking corporation to finance his contesting in preliminary elections, provided that the repayment period shall not exceed one year and its amount shall not exceed half of the total ceiling of expenses under section 28h; if the amount of the loan does not exceed 50,000 NIS, the candidate is entitled to receive the loan even if the sum exceeds half of the overall ceiling as aforesaid; a candidate shall inform the banking corporation that the loan is intended to finance his contesting in preliminary elections and the overall ceiling of expenses permitted to him.

b) A candidate may receive a loan to finance his participation in preliminary elections only from someone who is entitled to contribute under this Chapter, and such loan of a single lender and his immediate household members or of those dependent on him from an economic standpoint will be in an amount not exceeding the permitted contribution, and will be considered as a donation.

c) The guarantee of a loan under this section shall be from a person who is entitled to contribute under this Chapter, and such guarantee of a single guarantor and of his immediate family members or of those dependent on him from an economic standpoint shall not exceed the amount of the permitted contribution, and will be considered as a donation."

Source: Article 28d1, Parties Law, 1992. 

"An "eligible candidate" shall be entitled to receive from the State Treasury a grant to finance his participation in eligible primary elections as stated in this section, in an amount not exceeding the full amount of the financing allowed."

Source: Article 28(34)(a), Parties Law, 1992.

"A candidate in preliminary "elegible elections" who is not an "eligible candidate"... will be entitled to receive a loan from the State Treasury to finance his running in the preliminary elections as stated in this section, in an amount not exceeding the amount of the financing allowed."

Source: Article 28(36)(a), Parties Law, 1992.

"A candidate who is not an "eligible candidate" who became a member of the Knesset on the day of the opening meeting or until the end of one year from that date in this section... will be entitled to receive from the State Treasury a grant to finance his contestingin eligible primary elections in an amount not exceeding the amount of the financing allowed."

Source: Article 28(37)(a), Parties Law, 1992.

"A candidate who is not an "eligible candidate" who was not a member of the Knesset on the day of the opening meeting, and the party in which he competed is represented in the Knesset, will be entitled to a partial grant to finance expenses that he issued in "eligible primaries" in an amount that the ratio between this amount and the amount of the financing allowed is equal to the ratio between the number of valid votes received by the candidate and the lowest number of valid votes received by a member of the Knesset, on the day of its opening meeting, among the candidates who competed against him [in the elegible primaries], provided that the ratio is not less than 0.6."

Source: Article 28(38)(a), Parties Law, 1992.

Candidates may recieve loans from banks, under certain restrictions. They may also recieve loans from individuals (local and foreign), but such loans are considered as donations. An "eligible candidate" is entitled to receive full funding from the state - that is, the total amount of all the donations that he is entitled to raise (he is not allowed to raise funds at all). non-eligible candidate who participated in eligible primaries (that is, a candidate in such primaries whi is not MP or a member of the government) may recieve this amount as a loan fro the state; this loan will turn into a grant if the non-eligible candidate becomes a Knesset member after the elections or up to one year after the opening of the new Knesset. Under certain circumstances, even if that candidate has not become a Knesset member, part of the loan and will become a grant