03.08.2026
LHV has today, 3 August, opened applications for student loans for the upcoming academic year. For the first time, students no longer need to provide a guarantor or real estate collateral to obtain a student loan. This year also brings a longer repayment period: borrowers can now repay the loan over a period up to four times the nominal duration of their study programme, with a maximum repayment term of 25 years. The maximum loan amount is 6,000 euros per academic year, and LHV offers the lowest interest rate on the market: 1.45% plus six-month Euribor.
According to Catlin Vatsel, the Head of the Private Financing Department at LHV, removing the guarantor requirement makes applying for a student loan significantly easier. ‘Although student loans are guaranteed by the state, students previously had to find either a guarantor or provide real estate as collateral. This could become an obstacle even when they were ready and eager to begin their studies. Borrowers can now make the decision independently, without asking a family member or someone close to them to take on an additional financial commitment,’ Vatsel said.
Interest in student loans has grown in recent years, supported by the increase in the maximum loan amount from 3,000 euros to 6,000 euros per academic year. According to feedback from LHV customers, student loans are most commonly used to pay tuition fees, cover rent or student accommodation costs, meet everyday living expenses, and purchase computers and other study equipment. Vatsel believes that student loans help spread these costs over time, allowing students to focus more fully on their studies.
According to her, student loans are no longer taken out only by young people entering higher education immediately after secondary school. ‘In recent years, we have also seen a growing number of master’s and doctoral students, as well as adults returning to education after a longer break. Lifelong learning and retraining have become the norm. Many people study while working or return to university years after completing their previous degree. Adult learners often already have families, housing costs and other financial commitments. Removing the guarantor requirement and increasing the maximum loan amount make student loans a more flexible way for them to invest in their education,’ Vatsel added.
LHV offers the lowest student loan interest rate on the market at 1.45% plus six-month Euribor. If the total interest rate exceeds 5%, the Estonian state covers the amount above that threshold, meaning the borrower’s interest rate will never exceed 5%. During the study period, borrowers are only required to pay interest, which is automatically debited from their account once a year in November.
Repayment of the loan principal generally begins 12—18 months after graduation, provided the borrower has not continued their studies during that period. The repayment period is up to four times the nominal duration of the study programme, with a maximum of 25 years. For example, a three-year degree programme can be repaid over 12 years.
LHV has been offering student loans since autumn 2018, and demand has increased every year. Student loans can be applied for from 3 August via the LHV mobile app and internet bank. If a student’s enrolment details are recorded in the Estonian Education Information System (EHIS), LHV will disburse the loan from 15 September. There are no fees for signing the loan agreement or repaying the loan early.
All news