Credit line

What is credit line suitable for?

Credit line is a convenient option to constantly keep extra money at hand. Therefore, it is an ideal solution to cover unexpected major expenses. It is also a good solution for those, who are planning to spend more on various activities, for example, repair work, construction, etc.

Credit line is available on a separate credit account, which means that you can make transfers directly from the credit line account. You can also transfer the necessary amount from the credit line account to your daily bank account. This enables you to withdraw credit line in cash and also use it for card payments.

You can make repayments to the credit line account at a time and in the amount of your choice. This way, you pay less interest and can use the money again.

Regular price list of bank transactions applies to these transactions.

Terms and conditions for receiving credit line

All adult Estonian citizens or persons staying in Estonia on the basis of a permanent or temporary residence permit, whose average monthly net income in the last half year has been at least € 500 and it has been regularly received to their bank account, may apply for credit line.

If you are not a Swedbank client or your income is not transferred to Swedbank, we kindly request you to submit a bank statement of your income over the last 6 months to apply for credit line.

Interest and charge arising from obligations

The interest rate of credit line is 13–22%. The final interest rate depends on the amount, the borrower’s obligations and solvency. Interest has to be paid only for the days you actually use the money.

Charge arising from obligations is similar to monthly fee, amounting to only 1.2% per year and it is calculated from the unused amount of loan.

Agreement fee

The agreement fee is 1.5% of the credit limit, a minimum of € 35.

Automatic extension

If you have been following your contractual duties for a year and the ratio of your obligations and income is in accordance with the bank’s conditions, the credit line agreement shall automatically extend for another year according to the terms and price list valid at the moment of extension. This happens according to the terms and conditions and price list valid at the moment of extension. The bank will inform you about the terms and conditions for extending the credit limit. Upon automatic extension of credit line, the repayment period is also extended.

Overdraft agreements

The bank informs the clients personally about the extension of overdraft agreements that have been entered into before 2 March 2015. Upon automatic extension, the standard terms and conditions valid at the moment of extension apply.

• See the example of annual percentage rate of charge
• See the price list

How do repayments work?

The repayments begin once you want to start to repay the used credit limit or the use period ends.

Monthly payment

Upon entering into an agreement, we will agree with you on a monthly payment of the principal amount of your credit limit over the period of repayment. This is calculated as follows: we will divide your credit line credit limit with the maximum length of the period of repayment, which is always 48 months. For example, if you apply for credit line in the amount of € 4,800, we will divide it with 48 and this results in € 100 for a monthly payment.

Repayment period

For example, if you have used € 2,000 from credit line amounting to € 4,800, upon entering into agreement, we will divide it with the obtained monthly fee, which is € 100. This way, the period of repayment is 20 months. You can no longer use the unused part of credit line during the period of repayment, which in this case is € 2,800.

Using credit limit during the period of repayment

The credit limit of the credit account of credit line can be used if you have made additional repayments to this account. This way, you can implement this amount, but it decreases by a monthly payment each month.

Repayments or monthly payment

It is taken automatically from your bank account. If you have made repayments to the credit account of credit line yourself, then a monthly payment will be first taken from the credit account of credit line.

The credit line agreement expires if the client has repaid all used credit limit, accrued interest, and the charge arising from obligations.