Private loan
LHV Private Loan can be used to finance activities that are important to you
- Buying or renovating property
- Furnishing your home
- Financing larger expenses
- Investing against the collateral of real estate
How is the loan amount determined?
The desired loan amount is, for example, €30,000 to renovate an existing house, to which no mortgage has been set for the benefit of another bank. The market value of the house is €100,000. According to the bank’s assessment, the acceptance level of the collateral is 60%. This means that the bank is willing to issue a loan in the sum of up to €60, 000 against this collateral.
In addition to the collateral, the loan amount depends on the solvency of the client and their credit history.
Calculate the monthly payment
This is an estimate and may differ from the actual terms and conditions offered.
This is an estimate and may differ from the actual terms and conditions offered.
Price list and terms and conditions
| Loan amount | Starting from €30,000 a maximum of 70% of the market value of the collateral. The acceptance of the collateral and its percentage rate depends on the location and condition of the collateral. The maximum loan amount also depends on the client’s solvency and credit history. |
| Contract fee | 1% of the loan amount |
| Period | Agreement up to 10 years, payment schedule up to 30 years. The client can optimise their loan payments with a bullet schedule, where the payment amount is accounted on the basis of the 30-year payment schedule, while the term of the loan agreement is up to 10 years. The last monthly payment of the tenth year is the sum of all the unpaid principal payments, i.e. the bullet. When ten years have passed, the client’s agreement and loan terms and conditions are reviewed and usually a new agreement is made for the outstanding loan balance for another ten-year period. |
| Collateral | Real estate, securities or deposit. A private loan can be secured against the applicant’s property (e.g. an apartment or a detached house) that has not been encumbered with loan obligations before other banks. Property located in Tallinn, Tartu or their immediate vicinity is preferred. The property that is used as a collateral for the loan must be insured for the whole loan period. A loan can also be secured with securities or deposits. In special cases we also accept the guarantee of a private person as the security. |
| Interest | From 3.9% + Euribor. |
| Apartment valuation | We offer valuation for new apartments at an affordable price – EUR 75 |
| Applicant requirements |
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AS LHV Pank does not provide counselling service in the sense of Section 7 of the Creditors and Credit Intermediaries Act in the provision of loans. The loan applicant makes the decision to take out a loan.
Always think through your loan decision carefully. Review the terms and conditions at lhv.ee/eralaen and ask for advice from our specialist. The annual percentage rate of charge for a private loan is 4.297% on the following sample conditions: loan amount of EUR 30,000; self-financing of 30%; interest rate of 4% per year (floating, based on six months’ Euribor); agreement fee of EUR 300; period of 120 months; with EUR 36,419 as the sum of repayments; and the total amount paid back being EUR 36,719, with payment in the form of monthly annuity payments. An insurance contract needs to be concluded for the collateral in order to receive the loan. The rate does not include the expenses related to establishing and insuring the collateral.
Self-service in the internet and mobile bank
In the internet and mobile bank, you can view your
- loan balance
- payment schedule
- next payment information
Download the LHV Mobile Bank application to your phone to be able to access your finances anywhere, anytime.
Home Insurance
Home insurance provides peace of mind and a feeling of security. It is of help if an accident has taken place with your home and the contents of your home.
LHV, in cooperation with Compensa*, is offering home insurance with extensive all risk exposure coverage. In addition to the most common types of insurance cover, you can also choose cover for an insured event arising from construction or repair works. Compensa will also compensate household property under the principle of ‘New for Old’. Compensa is the only one in Estonia to cover loan payments for a period of three months, in the event that the insured home has become uninhabitable.
In the case of accidents, our 24 hour a day free home assistance service is available to help. You can count on quick assistance if a door lock is not working or a water accident has occurred.
| All risk | mandatory |
|---|---|
| Fire | ✔ |
| Storm damage | ✔ |
| Leak from the piping | ✔ |
| Theft, vandalism | ✔ |
| Flooding | ✔ |
| Home assistance | ✔ |
| Real estate liability insurance | up to € 10,000 |
| Loss of rent/costs of rental | up to € 4000 |
| Damage resulting from construction faults | ✔ |
| Civil engineering works | ✔ |
| Small buildings up to 20m² | up to € 10,000 |
| Home contents carried along in Estonia | up to € 2000 |
| Property stored in an apartment’s storeroom, in the yard of a private residence | ✔ |
| Damage caused by ice and snow falling from the roof | ✔ |
| Built-in furniture | ✔ |
| Interior finishing of the storeroom belonging to the apartment | ✔ |
| Theft of cash kept at home | up to € 300 |
| Cost of unauthorised use in the case of the theft of a bank card | up to € 300 |
| Costs of veterinary assistance for a pet following an insured event | up to € 300 |
| Costs of applying for a passport, ID-card, driver’s license in the event of theft | ✔ |
| Home contents ‘Old for New’, including telephones, tablets and laptop computers that are up to one year old | ✔ |
Liability for home insurance is € 200
Loss events, in which case there is no liability:
- home assistance service
- if more than 50% of the building has been destroyed
- rent (for example, cost of replacement housing) or lost rental income
- replacement of door lock in the event of damage to the door lock or the loss of keys
- shattering of the exterior glass surfaces of the building / apartment, for example, balcony glass
In the case of a loss event, please contact Compensa’s customer service:
- via telephone: 6756 756 (24 hours a day, 7 days a week)
- via e-mail: kahjud@compensa.ee
*LHV Pank acts as the insurance agent of Compensa Vienna Insurance Group, ADB Eesti filiaal (Compensa) and has been entered in the list of insurance intermediaries published on the web page of the Financial Supervision Authority, which can be checked at the address www.fi.ee. Compensa has granted LHV Pank authorisation to conclude home insurance contracts in Estonia, including acceptance of payments on behalf of Compensa, and also acceptance of notices and applications associated with insurance contracts mediated by the agent.
Compensa is responsible for the mediation activities of the insurance agent, and a complaint can be filed with the Financial Supervision Authority, at the address Sakala 4, 15030 Tallinn, regarding the insurance agent’s activities.
