19.08.2024
LHV has begun accepting 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 EUR 3,000 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.
According to Catlin Vatsel, Head of LHV Private Financing Department, education is one of the most important investments in a person’s life. ‘We wish to offer students the freedom to focus on school without worrying about finances. Last autumn, we saw a very strong interest in student loans: LHV received a record number of applications, and the number of student loans issued has increased almost tenfold compared to autumn 2021. 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 addition, a single guarantor is sufficient to take out a loan, with the maximum loan amount being up to EUR 3,000 per academic year,’ explains Vatsel.
Linking the interest rate to the Euribor means that today the interest rate would be 1.95% + 3.4%, or a total of 5.35%. 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. LHV has already begun accepting student loan applications. Contracts can be signed from 1 September, and the loan amount will be transferred from 15 September.
You can conveniently apply for a student loan at LHV via the mobile app or 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.
Nearly all everyday banking services are free of charge for LHV Youth Bank customers, and the free bank card also comes with various benefits and purchase insurance. Opening and managing a Growth Account is free of charge at LHV up to the age of 26, in order to facilitate the first steps taken by young people in the investment world.
LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As of July, LHV’s banking services are being used by 437,000 clients, the pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus protects a total of 167,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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