14.08.2023
Today, LHV opened the reception of student loan applications for the new academic period. LHV continues to offer the best conditions on the market for taking out student loans: interest 1.95% plus six-month Euribor, and the maximum loan amount is 3,000 euros per academic year.
A student loan is a product that helps the student to cover various expenses related to studies, from living expenses to tuition fees both in Estonia and abroad. The renewed student loan conditions that entered into force last year will continue to apply now, making it practical and affordable for students to take out a loan.
“Education is one of the most important investments in a person’s life. We wish to offer students the freedom to focus on progressing through education without worrying about finances. Last autumn, we saw that the change in the terms and conditions almost quadrupled the interest in student loans. Therefore, we have taken the opportunity to offer the best conditions on the market this year as well. The interest rate on a student loan at LHV is 1.95% plus 6-month Euribor in LHV. In addition, one guarantor is sufficient when taking out a loan. The maximum loan amount is up to 3000 euros per academic year,” explains Catlin Vatsel, Head of LHV Private Financing.
Linking the interest rate to the Euribor means that today the interest rate would be 1.95% + 3.927%, or a total of 5.877%. However, if, due to the Euribor rate, the total interest rate on a student loan exceeds 5%, as is currently the case, the rest is paid by the state, i.e., the maximum interest rate for the client is 5%. The Bank reviews the Euribor every six months and the change is reflected in the loan repayments. During the period of study, the student only pays the interest payment, which is automatically deducted from the account by the Bank 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 signed from 1 September and the loan amount will be transferred from 15 September.
You can apply for a student loan at LHV conveniently in the mobile app or using the internet bank. One guarantor, who must be at least 18 years old and have sufficient income to service both the existing loan and the loan being guaranteed, is sufficient to apply. Both entering into the contract and the premature repayment of the loan are free of charge. The process for transferring a valid student loan is also the same – you need to start by filling in the application.
Almost all everyday banking services are free of charge for LHV Youth Bank’s customers, and the free bank card also comes with various benefits and purchase insurance. Up to the age of 26, opening and managing a Growth Account is free of charge at LHV in order to facilitate young people’s first steps in the investment world.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s main subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs over 960 people. As at the end of June, more than 400,000 clients were using LHV’s banking services, LHV’s pension funds had 128,000 active clients, and 159,000 clients were covered by LHV Kindlustus. LHV Bank, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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