Study loans are offered by banks with or without government guarantees. The purpose of this credit is to cover the tuition costs at the educational institution. Higher education institutions and colleges are accredited to provide student loans.
What are the benefits of student loans?
Before you enroll, you may know if a student loan will be available. Banks usually guarantee student loans before enrollment. Applying to the bank is easy. The credit can be obtained within two to three days and this first installment is usually granted without approval from the university. Repayment begins after graduation, with a repayment term of up to ten years. There is also the possibility of taking a credit vacation for study loans. The average loan amount for banks is up to 8000 dollars. The higher the loan amount, the more likely it is that a guarantor will be required. If you need a guarantor, be aware that the guarantor must be a citizen of the Republic of Latvia or a resident of the Republic of Latvia with a non-citizen passport and regular income. Quite often the guarantor is one of the parents, but keep in mind that the guarantor must not be over 65 (depending on the conditions of the lending company). Where the guarantor has credit (s), the total amount of the loan payments shall not exceed 40% of the guarantor’s income. Real estate collateral (apartment, house or land) can also serve as a loan security.
There may be a need for a guarantor
Depending on the bank. The plus of the student loan is that the interest rate, even in the case of drop-out, will not be raised. Student loan with state guarantee is possible. The main thing is that the study loan does not exceed the set tuition fee and the state maximum loan amount. The credit amount is transferred to the account of the educational institution. If the student loan is selected in USD, the bank automatically converts it to USD. If you are studying abroad, your bank pays the contract.
The loan must be repaid within five years of graduation, and if the sums are higher, the maximum term is up to ten years (depending on the lending company). As a general rule, a student loan must be repaid approximately one year after graduation.
If you continue your studies at Master’s, Doctoral, or Residency level, you may defer the principal payment for the duration of the study process.
However, if the student is studying and there is no extra income for everyday expenses, then student credit is possible. The student loan is for covering the student’s living expenses. Only daytime students are eligible for this credit. The monthly amount fluctuates around 100 dollars. This monthly amount is credited to the student’s bank account for all months except July and August. Like a student loan , a student loan does not have to be repaid immediately, but only after graduation. This credit can also be extended if the student continues his studies. It is important to know that if a borrower has a child (ren) during their studies or repayment, the student loan is canceled at 30% of the outstanding amount for each child after graduation.
If the student does not repay the loan
The bank will turn to the guarantor. If the guarantor fails to repay the loan to the bank, the bank will go to court in accordance with the procedure laid down by law.
Quick loans in Latvia have been available since 2008. They offer you quick borrow money, which is already available in your bank account after 10-15 minutes.
In Latvia, the offer of fast credit companies is comparatively large, so before you borrow a quick loan, compare the offers of all companies and familiarize yourself with the loan terms, interest rates and penalties. Borrow responsibly.