As of today, SEB Pank accepts student loan applications

As of today, SEB’s Internet Bank and branches will begin accepting student loan applications. The maximum student loan rate for the 2019/20 academic year is €2,500, the annual interest rate is 5% on the loan balance, and concluding the agreement is free of charge. Students who will be attending a vocational post-secondary course lasting less than nine months are eligible to receive half of the maximum amount of loan, €1,250.

‘Today’s youth are increasingly cautious towards assuming new financial commitments, trying to cover study-related costs rather from their salary, aid received from their parents, study allowances, scholarships, etc., and take a student loan only if urgently needed. We can see that over the last years, the number of young people who finance their study-related expenditures with a student loan has decreased due to an overall increase in the living standard and improved financial literacy; for those who use the student loan, we recommend taking the loan in instalments to avoid excessive spending and simplify their financial planning,’ said Triin Raudsepp, head of the private client segment at SEB.

A student loan can be applied for by an Estonian citizen who has enrolled in or is already studying at an Estonian university, as well as by a person holding a long-term residence permit or a right of permanent residence with a duration of studies of at least six months. To obtain the student loan, sureties from two Estonian citizens or persons holding a long-term residence permit or a right of permanent residence or mortgage on residential property located in Estonia and owned by the student, their spouse, or a close relative is needed. More information about the appropriateness of the real estate as loan collateral can be obtained from each SEB branch.

SEB will begin transferring loan amounts to the accounts of first-year students from 1 October, to more advanced students from 16 September, provided that they meet the required conditions for receiving a student loan. If the borrower of a student loan with a previous student loan agreement does not want the bank to transfer this year’s loan amount to their account or wishes to take the loan out in instalments, they are asked to notify SEB thereof by 12 September at the latest. The respective 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.