Student loan

The student loan is guaranteed by the Republic of Estonia and is granted to cover expenses related to studies. Student loans are issued to customers who already have a valid student loan agreement with Danske Bank.

  • Loan amount: €2,000 (maximum rate for 2018/2019)
  • Interest rate: 5% of the outstanding balance per annum
  • Collateral: surety provided by two natural persons or real estate located in Estonia
  • Agreement fee: €2.56

If you have any questions please call us 6 800 800 or write us info@danskebank.ee

More about student loan

  • Loan amount

    The maximum student loan amount for 2018/2019 is 2000 euros. If the nominal duration of study according to the curriculum is shorter than 9 months, the available loan amount will be half of the maximum rate: 1000 euros for 2018/2019.

    The state-established loan amount can be collected in full during the academic year (until 31 May). You can apply for less than the maximum amount, but you will not be able to apply for the remainder at a later time.


  • Interest rate

    The interest rate for the student loan is 5% of the outstanding balance per year and is paid once a year on 30 November.

    If you increase your loan for the new academic year before 30 November, we will deduct the interest for the previous period from the new loan amount to be issued.

    If you do not apply to increase your loan for the new academic year, you must pay the interests to the bank by 30 November of the current academic year.


  • Collateral
    Collateral for a student loan can be surety provided by at least two adult (ages 18 to 60) Estonian citizens or persons with a long-term residence permit or permanent residence permit, or real estate located in Estonia. The minimum monthly gross income of the surety provider must be at least €500.
  • Loan repayment

    Loan repayment starts no later than 12 months after graduating from of leaving the academic institution and will be based on a bank-provided payment schedule.

    You can apply for a grace period during the loan repayment:

    • after the birth of a child until the child is 3 years old
    • for the duration of military service
    • for the duration of residency studies

    Payments of principal and interest will be stopped during the grace period. Interest on the student loan will be paid by the state during that time. You cannot apply for a grace period retrospectively.

    To apply for a grace period, please provide a free form application with the grace period duration and a document proving your right to the grace period (e.g. birth certificate, military certificate etc.).


  • Apply for changes

    In order to apply for an amendment (incl. premature termination of a credit agreement) we kindly ask you to:

    • submit a free-format application via the Danske eBank;
    • e-mail your amendment wish to info@danskebank.ee or to your Private Banker;
    • submit the application at nearest Danske Bank Business Centre.

    Refinancing student loans
    Student loan borrowers have the right to refinance their study loan with a different bank. To this end, we ask you to contact the bank to which you would like to transfer your loan. Further activities for refinancing the loan will be conducted via communication between the banks.

  • Loan remission

    You can apply to the Social Insurance Board during your loan period to obtain a loan remission if the loan recipient becomes incapable of work, dies, or if a child of the loan recipient becomes severely or profoundly disabled.

    Detailed information and conditions for application are listed on the Social Insurance Board's website.

How to apply

  • Requested documents
    • Student loan application (PDF)
    • Identity document
    • Written consent of a legal representative if the study loan applicant has restricted active legal capacity.
    • Application for a Student in a Foreign Academic Institution (PDF) and a certificate from the academic institution, if the applicant is studying in a foreign academic institution.

    Documents required for surety:

    • Surety Application
    • Identity document
    • Document certifying regular income
  • Examples of annual percentage rates of charge

    There are various expenses related to borrowing and loans themselves, such as such as interest, credit fee, monthly maintenance fee to the card tied to the loan, etc. The annual percentage rate (APR) of charge can be calculated for every loan on the basis of these expenses. Basically, the APR is the amount of the expenses arising from the loan in a year.

    The sample APR of the loans offered by Danske Bank are given below.

    Home loan

    The initial APR is 1.83% per year on the following sample conditions:
    credit amount €50,000, interest 1.75% per year (6 month EURIBOR + 1.75%; calculated on 6 month EURIBOR as at 10.03.2016, which was -0.139% and is deemed to be 0 (zero), unfixed interest), contract fee €250, term 25 years, total amount €62,201.35, monthly repayment €206,52. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full and the principal is repaid and interest is paid in monthly annuity payments. Collateral must be inured for the entire period of the loan.

    Overdraft

    The APR is 26.94% per year on the following sample conditions:
    credit limit €700, interest rate 18%, contract fee €20, current account management fee €1.50 per month, repayment term 1 year, total amount €865.75. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full.

    Student loan

    The initial APR is 5.45% per year on the following sample conditions:
    credit amount €1,920.00, interest rate 5%, contract fee €2.56, total amount €1,975.89. The rate was calculated on the assumption that the loan amount will be immediately drawn down in full and repaid within a year in 12 equal instalments after equal intervals of time.

    Car leasing

    The initial APR is 2.72% per year on the following sample conditions:
    capital lease, price of property €19,000 incl. VAT, down payment 20%, residual value of property at end of period 0%, contract period 5 years, interest rate 2.0% (6 months EURIBOR + 2.00% per year; the calculation is based on 6 months EURIBOR as at 01.02.2017, which was 0.244% and is deemed to be 0 (zero); unfixed interest rate), contract fee €175; current account management fee €1.50 per month, total amount €16,260.49, monthly repayment €266.42. The property must be inured for the entire period of the loan.


Disclosure

Please note that every loan is a financial obligation and any failure to perform the obligations arising from the loan agreement may have serious consequences (e.g. compulsory sale of property).

Consider your possibilities and needs carefully before you sign the loan agreement. Read the terms and conditions of the loan and request information from your relationship manager if necessary.

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