SEB advises that a student loan only be taken if needed
As of today, SEB’s Internet bank and branches will begin accepting student loan applications. The student loan is a state-guaranteed loan for covering education related expenses.
“Taking out a student loan is advisable if the purposes for its use have been considered thoroughly. The student loan may also be applied for in instalments, as needed during the academic year. Therefore, it is reasonable to think through whether there is a need for the entire loan in a lump sum or, rather, in instalments, and whether the loan recipient is able to cope with the payment of annual interest on a student loan during their studies. The option of taking the loan out in instalments is mainly advisable to students who are using it to cover their daily living costs, not their tuition,” commented Evelin Tammearu, business development manager of SEB’s private clients.
The maximum student loan rate for the academic year set to begin soon is EUR 1920, the annual interest rate is 5% on the loan balance, and concluding the contract is free. Students who will be attending a vocational post-secondary course lasting less than nine months will be eligible to receive a student loan in the amount of EUR 960, which is one-half the maximum amount.
“The level of awareness and responsibility regarding the student loan as a financial obligation has grown from year to year among students, and usually a student loan is not applied for unless it is actually needed. Yet, for a student lacking other income, a loan might be essential in order to pay their tuition, buy a computer, or cover living expenses,” added Tammearu.
An Estonian citizen or a person holding a long-term residence permit or having the right of permanent residence is eligible to be the provider of a surety to a student loan, if the person has been earning a regular income equal to at least the minimum wage for the past three months. Once a student loan agreement has been concluded, two sureties who are private persons can sign the suretyship contracts at a bank branch or via the Internet bank. Real estate located in Estonia may also be used to secure the student loan; detailed information on whether the real estate is suitable for securing a student loan can be obtained from any SEB branch.
SEB will begin transferring loan amounts into the accounts of first-year students from 1 October; more advanced students will receive their loan from 15 September, provided that they meet the required conditions for receiving a student loan. If the borrower of a student loan who has an existing student loan agreement does not want the bank to transfer this year’s loan amount into their account or wishes to take the loan out in instalments, they are asked to notify SEB at the latest by 12 September. The application can be submitted through the Internet bank, by mail, or delivered to any branch of SEB.
More information about the student loan is available on SEB’s website at www.seb.ee/oppelaen. Further information about the loan can be requested also via chat room on the student loan product page (www.seb.ee/oppelaen) of SEB. The student loan chat room is open from 8:30 to 17.00. To start the chat, simply enter the client’s first- and surname and e-mail address.
For more information:
Evelin Allas
Communications Manager
Marketing and Communications Division
SEB
Phone +372 665 5649
Mobile: +372 511 1718
Address Tornimäe 2, 15010 Tallinn
e-mail evelin.allas@seb.ee
www.seb.ee
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