2. September 2020
LHV Pank has begun accepting student loan applications and will be offering students up to EUR 2,500 in student loans this academic year.
Although LHV will only start disbursing state-guaranteed student loans from 15 September (for first-year students from 1 October), those interested in a loan can submit a loan application immediately. This year’s maximum loan amount per academic year is EUR 2,500, and EUR 1,250 euros if the student’s nominal study period is less than nine months The borrower’s studies can take place either in Estonia or abroad.
The student loan can be applied for free of charge, and the loan interest is 5% per annum. LHV Pank offers clients early repayment of the loan or changes to the schedule free of charge.
‘The student loan is primarily intended for students who are more committed to their studies and want to cover the expenses incurred during their studies with the help of the loan’, said Catlin Vatsel, Head of LHV's Private Financing Department. ‘Repayments of the main part of the student loan can be left to the post-graduation period, by which time the highly educated specialist has hopefully found an acceptable job’, Vatsel added.
Repayment of the principal of the student loan begins no later than 12 months after the end of studies. The repayment schedule will be prepared for a period that is equivalent to twice the nominal period of study. It should be noted, however, that until the repayment of the principal of the student loan begins, an interest payment calculated on the loan balance on 1 November of each year must be paid.
The student loan application process is simple. The loan is secured by a guarantee given by two persons or real estate located in Estonia. The surety must be at least 18 years old and their net income for the last three months must be greater than the minimum wage.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 470 people. LHV’s banking services are used by 227,000 clients, and pension funds managed by LHV have 181,000 active clients. LHV’s UK branch offers banking infrastructure to more than 120 international financial services companies, via which LHV’s payment services reach clients around the world.All news