Student loan

A citizen of the Republic of Estonia or a citizen holding a permanent residence permit in the Republic of Estonia is entitled to receive a student loan

• who is studying part- or full-time at a university, an institution of professional higher education or a post-secondary vocational school in Estonia or abroad
• who has not defaulted on payment to the bank or any third parties
• who is not on an academic leave

The borrower may have a current student loan agreement with only one bank issuing student loans.

Documents required for applying for a loan

• loan application
• identity document (passport or ID card)
• in the event of study at an educational institution abroad, a certificate indicating the curriculum, form of study, study load, start of studies, regular length of study, ISCED (International Standard Classification of Education) level code. If the certificate is not in Estonian, English or Russian, a certified translation of the certificate has to be submitted as well.

Ask the guarantors to conclude guarantee agreements with Coop Pank.

Guarantors have to submit to the bank

• a form with their information
• guarantor’s identity document (passport or ID card)
• three months’ account statement if pay has not been received at Coop Pank

If the collateral is real estate instead of guarantees, submit to the bank an expert assessment of the collateral, prepared by a real estate firm accepted by Coop Pank, together with other documents.

First-time applicant’s student loan agreements and related guarantee agreements may be concluded at all the branches of Coop Pank. A student loan begins to be disbursed from 15 September; in an exception, for students in their first year, loans are disbursed from 1 October.

In the case of student loan borrowers who have concluded valid loan agreements with Coop Pank in previous years, the loan amount is transferred into the payment account automatically. If the borrower does not wish to receive an automatic disbursement of the loan amount, it is necessary to submit a relevant request in the Internet bank or at the branch before 15 September.

Guarantor data form

The collateral of a student loan is the guarantee of two adult citizens of the Republic of Estonia or persons staying in Estonia on the basis of permanent residence permits, or a mortgage over real estate located in Estonia.

• calculation of interest on and repayment of a student loan are suspended for the duration of conscript service
• for one parent of a child under 3 years of age, calculation of student loan interest and loan repayment are suspended until the child turns 3 – for a physician doing their residency, calculation of student loan interest and loan repayment are suspended until the completion of the residency
• in the event of the death of the borrower, the borrower’s guarantor, the owner of the collateral or a third party is entitled to apply to the State for an indemnification of the student loan
• a student declared to have 80% to 100% permanent incapacity for work may apply to the State to repay the student loan in full
• if a child of the borrower is identified as having a profound disability, the State will pay the student loan of one parent in full

Benefits may be sought by submitting a relevant request to the bank. For detailed information, ask a private loan manager.

The provisional annual percentage rate of charge is 5.3% on the following sample terms: credit amount € 1920, agreement fee € 2, fixed interest 5% per annum, total amount paid by the consumer € 1974 and total amount of repayments of € 1972.

The rate is calculated on the assumption that the credit amount will be used immediately, in full and repaid within one year in twelve equal payments after equal intervals.

Review Coop Pank's price list.

A guarantee is a promise to fulfil a financial obligation of another person or company (borrower) instead of them. Provide a guarantee only for a person or company whom you know and trust.

Do not forget! A guarantee is your obligation to ensure the performance of the agreement being guaranteed.

Since you are assuming a financial obligation with a guarantee, it always makes sense to ask a specialist for advice.

Before you provide a guarantee

• Consider carefully whether you would be able to meet your obligations
• Assess your solvency carefully and provide a guarantee only in the amount you are able to pay (maximum rate of guarantor liability).
• Review carefully the drafts of the guarantee agreement and the loan agreement.
• Do not hesitate to contact a bank staff member to find answers to any questions that have come up.

When you are about to sign a guarantee agreement

• Listen very carefully to the explanations of the bank staff member about both the loan agreement and the guarantee agreement.
• Do not be hesitate to ask if anything remains unclear.
• Check to make sure that your contact details (address, telephone number, e-mail address) in the guarantee agreement are correct.

Once a guarantee agreement has been signed

• Be proactive and take an interest in how the performance of the loan agreement is proceeding. If the borrower does not reply to your questions, make sure to contact the bank.
• Always communicate any changes in your contact details (address, telephone number or e-mail address). Only in this way you can be certain that the necessary information will reach you.
• Carefully review any notices sent by the bank and make sure to collect any registered letters.

The borrower is unable to meet their obligations

• The bank will contact you and provide you with an opportunity to fulfil the obligation.
• Do not forget that you have assumed an obligation and have to fulfil the obligation instead of the borrower.
• By paying the debt, you can avoid incurring further costs and litigation in court.
• You are entitled to require the borrower to indemnify any amounts paid by you.

Guarantor data form