Private loan

You do not need to be a customer of LHV when applying for a loan. People can apply for a loan if their income (salary, dividends and/or lease income) after covering everyday expenses is sufficient for making loan repayments.

The range of purpose of private loans is wide. You can apply for a private loan in order to buy or renovate a property, furnish a home, finance investments or for other major expenditures.

For this purpose, you first have to complete a loan application on our website. If your salary or other income is not currently received in LHV Pank, please also send bank statement for the last 6 months to eralaen@lhv.ee (digitally signed, in bdoc format and definitely unfiltered) as well as an evaluation report of the collateral property (you can also send this later). If you receive your income from a company owned by you, please send us the annual report of the last financial year of your company and the details of the financial indicators of the current period (balance sheet and income statement), which are not older than 2 months.

You can use liquid real estate property that is in good condition and belongs to you or a person close to you as loan collateral. We grant loans in the extent of up to 70% of the market value of collateral property. Term deposits and securities are also suitable collateral for a private loan.

The smallest loan amount is 30,000 euros and the biggest depends on your creditworthiness. We analyse the repayments of your previous loans and the private loan collaterals and calculate a loan amount with repayments you can afford. Repayments of loans and leasing contracts may form up to 50% of income, but the rate also depends on the number of your dependants. We calculate the monthly loan payment at an interest rate of 6%, based on the Regulation of the Bank of Estonia.

You can also calculate your biggest possible loan amount using the calculator.

You can choose between an annuity and a schedule with equal payments of principal.

According to the annuity schedule, the loan payment is the same every month until the end of the loan period. In the initial period of the loan, it consists mostly of interest, but with each subsequent monthly payment, the share of the principal increases. We calculate interest on the loan balance.

In a schedule with equal principal payments, the principal of the loan is divided into equal parts, plus interest. Because we calculate the interest on the loan balance, your repayment becomes smaller every month.

Thus, the annuity schedule is characterized by uniform payments throughout the loan period and, in general, a higher amount of interest. According to the fixed principal schedule, repayments are higher at the beginning of the loan period, but they decrease steadily and ultimately a lower amount of interest is charged.

Yes. You can apply for a private loan while you are not yet a customer of LHV, but you have to conclude a customer agreement in our office or internet bank before you conclude a loan agreement.

Yes, it is possible. If you want to return the whole loan sum or a part of it prematurely, it can be done free of charge at LHV Pank. To do so, send an e-mail to your loan administrator.

In order to end the loan agreement prematurely, you need to transfer, by the agreed date, an amount which covers the interest accumulated to date and the unpaid principal sum to the account at LHV Pank which is linked to the loan.

If you need a payment holiday, please send us, via the internet bank, an application to change the agreement. It is important that the request for the payment holiday reaches us before the debt has been incurred. To extend a current payment holiday, please contact your loan manager. You can apply for a payment holiday for up to 12 months at a time.

Yes. Just like you, we at the bank are also interested in insurance to cover the losses if the real estate property that has been established as collateral gets damaged. Therefore, the real estate property has to be insured.

Upon concluding an insurance contract, choose a cover that protects against the most common risks. The cover definitely has to include fire, water, natural disasters and vandalism. The collateral real estate property has to be insured throughout the loan period. LHV Pank has to be the beneficiary.

Home can be insured with LHV Kindlustus. Find out more or ask directly from your loan manager.

You can see your valid insurance policy information in the Internet bank under contract view.

The following can be viewed:

• policy number,
• policy validity period,
• the insurance organization,
• insured property.

As of 1 January 2024, private individuals will no longer be able to deduct housing loan interest from their taxable income. This means that the interest on a loan or lease taken for the acquisition of a house or apartment for housing could be deducted by private persons for the last time on the income tax return submitted for 2023.

As a private person, you can get tax advice on the Tax and Customs Board information line 880 0811 or by e-mailing eraklient@emta.ee.