What do I need to know before applying for a student loan?

You can be accepted for a student loan if you are between the ages of 18 and 65, employed or have other sources of income.

Student loans are granted provided that collateral can be offered. Types of collateral include:

Personal guarantees

Mortgage on property

Assignment of deposit account

Assignment of Life Insurance Policy

The interest rate is determined depending on the security you offer. You can secure a lower interest rate if you offer a tangible collateral (e.g. mortgage, assignment of deposit). The interest rate is higher when only personal guarantees are offered.

What should I know after my student loan is approved?

You can provide us with written instructions so that your installment is paid automatically by transfer from your current account.

Pay the loan installment as provided in the loan terms. Make sure you talk to your personal banker in order to set a convenient date. If this date needs to be changed, contact your personal banker on time.

If you are late in paying an installment, you will incur additional costs. These costs will appear as an additional charge on the unpaid amount. To avoid additional charges, be sure to pay your installment on time.

If your financial conditions change and you cannot afford to make regular installment payments, contact your personal banker in advance to jointly decide on a new repayment schedule. 

What are the initial fees and what do they include?

Student schemes may carry initial fees that are paid once, at the time the loan is granted:

Initial Bank fees

Arrangement fees: To prepare and evaluate your application.

Contract preparation fees: These fees relate to the number of documents required for the specific loan.

Government fees: These fees are determined in accordance with legislation, e.g. fees to register a mortgage with the Land Registry and fees for stamping the loan documents with the Commissioner of Taxation.

Fees paid to third parties: These fees relate to valuations carried out on behalf of the Bank by approved valuers when mortgage is offered as collateral, or when life insurance is taken out.

 

How do I calculate the total cost of my loan?

Find out the APR of your loan.

The APR (Annual Percentage Rate) is the total cost of your loan (including interest and all the fees you must pay) and is expressed as an annual percentage on the amount you have borrowed.

The APR gives you a complete picture of the total costs of a loan, and is the tool that best allows you to compare different offers –either from the Bank itself or from different banks.

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