LHV student loan – for whom, for what and how?

A student loan helps you cover study-related expenses, from living costs and buying a laptop to tuition fees, both in Estonia and abroad. As student loans are regulated by law, they offer more favourable terms than standard loans. From 1 September 2026, those terms will become even more attractive: you will no longer need a guarantor or real estate collateral, the interest rate will be lower, and the repayment period will be extended.

1. Is the student loan only meant for university students?

No. In addition to bachelor’s, master‘s, and doctoral students, student loans are also available to students enrolled at universities of applied sciences and vocational education institutions. Vocational training must be based on secondary education.

Estonian citizens studying abroad may also apply for a student loan, provided that their study programme has a nominal duration of at least six months and they are neither on academic leave nor studying as external students.

Student loans are only available for formal degree programmes. This means they cannot be used to finance micro-credential programmes or other forms of continuing education.

Please note that you can only receive a student loan at the same level of study for the total nominal duration of that level. For example, if you completed a 3-year bachelor’s degree and took out a student loan in each of those three years, you will not be eligible for another student loan if you start a new 3-year bachelor’s programme.

Periods of academic leave are not included in the calculation of the nominal study period.

2. Do I need to provide collateral to apply for a student loan?

No. From 1 September 2026, you will no longer need either a guarantor or real estate collateral to apply for a student loan.

3. What is the interest rate on a student loan?

The student loan interest rate consists of the bank’s margin, which is 1.45% at LHV, and the 6-month Euribor. You can view the current Euribor rate here.

For example, if the 6-month Euribor is 2.688%, the total interest rate on your student loan will be 1.45% + 2.688%, giving a total of 4.138%.

If the Euribor rises and the total interest rate exceeds 5%, the state will cover the amount above that threshold. This means that the maximum interest rate you will ever pay is 5%.

The 6-month Euribor applied to your student loan agreement is updated every six months, and any change will be reflected in your future loan payments.

While you are studying, you only pay the interest on the loan. Interest is calculated on the outstanding loan balance and is automatically debited from your bank account once a year, on 1 November.

4. When do I have to start repaying my student loan?

You do not have to start repaying your student loan immediately after taking it out. While you are studying, you only pay the interest on the outstanding balance once a year, on 1 November.

Repayment of the principal on a monthly basis begins 12 months after graduation. The repayment period depends on the nominal duration of your study programme.

Your repayment schedule is based on four times the nominal duration of your studies. For example, if you complete a 3-year bachelor’s degree and do not continue your studies, you can repay your student loan over a period of up to 12 years. You are, of course, free to repay it sooner if you wish.

If you discontinue your studies, you must repay the loan over a period equal to one and a half times the length of time you actually studied. The minimum repayment period is six months. In this case as well, repayment of the principal begins 12 months after your studies end.

5. What changes can I make to my student loan agreement?

You can amend your student loan agreement free of charge.

Most amendments relate to the repayment schedule. For example, you can shorten the repayment period, start repaying the principal earlier or repay the loan in full before the end of the agreed term. The latter can be a good option if you start working while you are still studying.

You can also apply for a payment holiday while on parental leave, completing compulsory military service or undertaking a medical residency. During this period, the state will cover the interest on your student loan.

6. If I already have a student loan with another bank, can I apply for a new one with a different bank?

Yes, it is possible. To do so, you will need to transfer your existing student loan to the new bank, as you can only have one student loan agreement at a time.

From 1 September 2026, customers who have already taken out a student loan but have not yet started repaying it may also apply for the new loan terms.

To transfer your student loan to LHV, simply submit a student loan application. If your application is approved, we will conclude a new student loan agreement with you. You will then need to pay the interest accrued to your current bank up until the date the new agreement is signed, after which LHV will repay the outstanding principal to your previous bank.

Once your new student loan agreement has been concluded, your previous agreement will automatically terminate and you will continue repaying your student loan to LHV.

7.How do I apply?

• Complete a student loan application on the LHV website or in the mobile app. Submitting an application is free of charge and does not oblige you to enter into a loan agreement.
• Once you have submitted your application, we will do our best to send you the loan agreement for digital signature within three working days, provided your application is approved.
• If your study details are recorded in the Estonian Education Information System (EHIS), we will transfer the student loan to your account from 15 September onwards.

Student loans are offered by AS LHV Pank. Always consider your decision to take out a loan carefully. Read the terms and conditions at lhv.ee/en/student-loan and consult one of our specialists if needed.
The Annual Percentage Rate of Charge (APR) for the student loan is 5.14% per annum based on the following representative example: loan amount €6,000; interest rate 6-month Euribor + 1.45% per annum (variable, with a maximum total interest rate of 5%); agreement fee €0; total amount of repayments and total amount payable €6,163.74. The calculation assumes that the total interest rate payable by the borrower is 5% and that the loan is repaid over a period of 12 months in equal monthly instalments. The APR, the total amount of repayments and the total amount payable may be higher if the loan is repaid over a longer period.