Type of loan: state-guaranteed student loan
Loan amount and currency: in 2022/2023, the maximum amount of the student loan is 1,500 euros per borrower whose period of studies according to the curriculum is 6 to 8 calendar months, and 3,000 euros per borrower whose period of studies according to the curriculum is 9 calendar months or more.
The Government of the Republic establishes the maximum amount of the student loan once per year. The bank informs the borrower each academic year of the maximum amount of the student loan, the application and issuing procedure and deadlines through the media before 1 September. The student loan can be received in the maximum amount on each level of education for as many times as the nominal duration of studies is at the corresponding level of education. If the borrower has received the state-guaranteed student loan at the same level of education during previous studies, the number of times they are entitled to a student loan is reduced by the number of times the student loan was previously received.
Duration of the loan agreement: the duration of the loan agreement is related to the nominal time of the borrower’s studies and/or the actual period of eligibility for the student loan. The borrower must commence repayment of the loan amount no later than 18 months after finishing their studies due to the completion of the curriculum in full or leaving the educational institution for another reason, unless they have continued their studies during this time while being eligible for the student loan.
The borrower undertakes to repay the full amount of the loan together with interest if they finished their studies due to completion of the curriculum in full and to repay the loan amount within a period of double the nominal duration of the curriculum, calculated from the beginning of repayment; or, in the case that they finished studies for another reason, to repay the loan amount within a period of one and a half times the duration of their studies at the educational institution, calculated from the beginning of repayment, but not less than 6 months, and not longer than one and a half times the nominal duration of the curriculum.
If the borrower has continued their studies whilst eligible for the student loan within 12 months of finishing their studies, they undertake to repay the entire loan amount, together with interest, during the period calculated from the beginning of repayment and received by adding up the calculated periods according to the foregoing, but not longer than within a period of 20 years.
Type of interest rate applicable: 6-month Euribor + 1.95% per annum. The calculation of interest starts from the day of transfer of the student loan, and ends on the day of full repayment of the loan amount to the bank. When calculating interest, the bank is guided by the actual number of days in the calendar month and a 360-day year.
Euribor (Euro Interbank Offered Rate) is the EUR base rate established by the Eurozone banks for each interest period, equivalent of the EUR deposit interest rate for 6-month deposits, established on the day of change of the Euribor (published on the corresponding website of Telerate or Reuters or on another official website). The current Euribor rates are also available on the bank’s website.
In the event that the EUR base rate for 6-month EUR deposits established by Eurozone banks on the Euribor change date agreed on in the loan agreement is less than 0% per annum or negative, the Euribor rate is calculated as 0% per annum on the corresponding day of change of the Euribor.
Required security: fulfilment of the obligations of the borrower arising from the loan agreement guaranteed by a surety of at least one Estonian citizen or a person staying in Estonia on the basis of a residence permit or permanent right of residence, or a mortgage on real estate located in Estonia. The bank has the right to demand the provision of supplementary security if this is required by the laws of the Republic of Estonia or by legislation established by the Government. If the value of the security has decreased (incl. there has been a deterioration in the economic situation of the borrower’s surety) or the surety has died, the borrower must immediately provide supplementary security in favour of the bank after the relevant circumstance has occurred.
The bank must inform the loan applicant immediately and free of charge about the results of a database query if, as a result of the query, it is decided not to grant a loan to the applicant. Information received from databases is not transmitted if the transmission of such information is prohibited by law or is contrary to public order or security purposes.