LHV make the terms and conditions of student loans more favourable and opened applications


Student loan applications can already be submitted at LHV. This year, the maximum loan amount is 3,000 euros, the interest rate is 2% plus six-month EURIBOR and other loan conditions for students are also better than before.

A student loan is a product that helps to cover various study-related expenses, from living costs to tuition fees, both in Estonia and abroad. From this academic year, there are also significant changes that apply to taking out a student loan, which make it easier and also cheaper for students to take out a loan.

“Education is a value that is always worth investing in. Now that only two large banks offer student loans in Estonia, our responsibility for young people is even greater. Therefore, we have also taken the opportunity to make taking out a student loan even more favourable for them. The new interest rate on a student loan at LHV is only 2% + 6-month EURIBOR instead of the previous fixed interest rate of 5%. In addition, if previously one of the main obstacles for young people in securing student loans was the need to have two guarantors, then one guarantor is now sufficient. The maximum loan amount has increased by EUR 500 and is now up to EUR 3,000 per academic year,” explains Catlin Vatsel, Head of the Private Financing Department at LHV.

Linking interest to EURIBOR means that today the interest rate would be 2% + 0.678%, or a total of 2.678%. However, it should be kept in mind that the bank reviews the EURIBOR every six months and its change is also reflected in the loan payment. If, due to EURIBOR, the total interest rate of a student loan should exceed 5%, the rest will be paid by the state, i.e., the maximum future interest on the loan for the client will be 5%. During their studies, the student only pays the interest payment, which the bank automatically charges once a year in November.

Repayment of the principal of your student loan begins no later than 12–18 months after graduation, unless the student has moved on to further studies during that time. The repayment schedule is prepared for a period equal to twice the nominal period of study, i.e., in the case of a 3-year study period, the repayment period is 6 years.

Student loan applications can already be submitted at LHV. Contracts can be entered into from 1 September, and the loan amount will be transferred beginning from 15 September, and for freshmen beginning from 1 October. Considering LHV's renewed favourable conditions, all clients who have previously taken out a student loan at another bank are also welcome; they can conveniently transfer their valid loan to LHV and benefit from the new conditions.

You can apply for a student loan at LHV conveniently in the mobile app or using the internet bank. To apply, it is sufficient to have one guarantor who must be a citizen of the Republic of Estonia, a person with a long-term residence permit or a person with permanent right of residence. The guarantor must be at least 18 years old, and their income must be sufficient to service both existing loan obligations and the loan obligations to be guaranteed. Both entering into the contract and the premature repayment of the loan are free of charge. The process for transferring an old student loan is also the same – you need to start by filling in the application.

More information: https://www.lhv.ee/en/student-loan

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 820 people. As of July, LHV’s banking services are being used by 354,000 clients, the pension funds managed by LHV have 132,000 active clients, and LHV Kindlustus protects a total of 149,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.

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