Credit line

Credit line is the perfect solution for covering unexpected larger costs or for balancing the family budget

  • Loan sum is €500–20,000, but not more than four monthly salaries.
  • Money immediately to the bank account, no deposit necessary;
  • Income at least €500;
  • Interest 13-22%;
  • Credit line contract fee €0 for reward points
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Application

Every adult Estonian citizen or a person living here with a temporary or permanent residence permit and everyone whose average net monthly income in the last six consecutive months has been at least €500 paid into their bank account can apply for a credit line.

If you are not a client of Swedbank or your income is not paid into a Swedbank bank account, you need to present a statement of your average net monthly income in the last six consecutive months from the bank into which your income is paid.

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.

Repayments

The credit line repayments begin after the loan usage period ends or if the client wants to terminate the loan usage period. A schedule will be set for the used sum and according to this schedule the repayments will be made. During the repayment period the client can use the rest of the credit, which will decrease every month by the repayment sum.

Overdraft agreements

Overdraft agreements signed before 02.03.2015 will continue as they are and these are extended automatically according to 01.10.2015 overdraft standard terms and conditions.

Signing the agreement

The credit line agreement can be signed most conveniently in the Internet Bank. The contract is signed for one year and the signing fee is 1.5% of the loan amount (minimum €35). After the contract is signed, the sum agreed on is transferred to the credit line account linked to the credit line. From this account you can make all the necessary transactions. If you want to use the credit line for card payments or cash withdrawal you need to transfer the necessary sum from the credit line account to your current account.

See the annual percentage rates

Interest and commitment fee

The credit line interest rate is 13-22%, final interest rate depends on the amount of the entire sum, burrower's obligations and payment capabilities. Interest has to be paid only for the days you actually use the money. Interest is debited from your current account on the date determined by you.

In addition to interest you also have to pay the monthly commitment fee, which is 1.2% per year and which differently from interest is calculated from the loan sum not used.

See the entire pricelist

Early repayment

You can also partially or fully repay the credit line before the end of its term. To do so you need to send us a bank message via the Internet bank or submit an application at a bank branch. Credit line partial or full repayment is free of charge.

How do repayments work? Example
The credit line repayments begin after the loan usage period ends. If the client takes a credit line on 1 March 2015 for a one-year period the client can use the credit limit agreed on at their own disposal for the entire year. If the client does not want to extend the contract at the end of February next year or if the client no longer meets the contract requirements, the loan usage period ends on 28 February 2016 and the repayments shall begin in March.
Repayment schedule depends on the maximum credit limit and repayment period agreed on in the contract and how large the used credit limit left at the end of the loan usage period is. If the credit limit is €4,800 and the repayment period is the maximum length, i.e. 48 months, the monthly repayment is €100. That is so even if by the end of the loan usage period only a part of the credit limit has been used.
Sum to be repaid is the sum that was in use at the end of the loan usage period, in our example, on 28 February 2016. If the client used €2000 from the €4800, the option to use the rest of the €2800 will be closed and the €2000 is going to be repaid.
Repayment period is calculated according to the sum to be repaid and the monthly principal amount payment calculated according to the contract. The €2000 in use is divided with the €100 repayment calculated before and the result is a repayment period of 20 months.
The client can use the credit limit left during the entire repayment period, but the limit will begin decreasing step-by-step. The first month the limit is €2000, the second month €1900, etc. – the limit shall decrease by €100 each month during the 20 months.
The account from which the repayments are made can be either the credit line account or the client's current account. If the entire residual credit limit is in use on the repayment day, then the €100 repayment shall be withheld from the client's current account. If the credit sum is not in use then the limit on the credit account will simply be reduced by €100. If only €50 is not used from the credit limit then the limit shall still be reduced by €100: 50 from the credit account and 50 from the current account.
After the repayment of the principal amount of the loan, the interest and/or commitment fee must also be paid. These are always withheld from the client's current account. The interest is calculated from the used credit limit, the commitment fee from the sum that is not in use, but which the client can use as a loan.
The credit line agreement shall terminate, after the client has repaid the entire used loan sum, interest and commitment fee.

Please read the terms and conditions carefully before you sign the contract, and consult an expert if necessary.

  • How is a credit line different from overdraft?

    A credit line is set up on a separate account – a credit line account. You can keep a sum on this account, which is equal to the credit line sum issued to the client. If you make a transaction and the sum on the credit line account then exceeds the credit line sum, the excess sum shall be transferred back to the client’s current account during day change. If someone else transfers the excess sum, the excess sum is still transferred back to the client's current account and not to the current account of the person who made the transaction.

    Credit line requires the client to pay a commitment fee for the unused loan sum. In case the client does not respond to the extension conditions, the client does not need to repay the whole loan sum immediately but it can be done over 48 months. Signing a separate repayment schedule is not necessary for terminating the contract. The limit shall decrease automatically every month and the client shall have the right to use the sum that has not been repaid.

  • What happens with my existing overdraft contract?

    The existing overdraft contracts shall continue to be valid on the existing terms and the contracts can be amended at your request. The only restriction is that the overdraft limit cannot be increased. We will also automatically extend the overdraft contracts on the existing conditions. It is sufficient if you meet the requirements for automatic extension.

    If you want you can exchange the overdraft contract for a credit line contract. For this you need to provide us with an application via the Internet Bank or at any branch.

  • Will my overdraft automatically turn into a credit line?

    No. If you want you can continue using the overdraft. If you would like to start using a credit line instead of the overdraft then present us with a credit line application in the Internet Bank or at any branch.

  • How can I end my overdraft contract?

    You can terminate the overdraft contract in the Internet Bank if the current account connected to your contract has the necessary sum for covering the overdraft. If the current account does not have a sufficient sum but you would still like to terminate the contract, you can send us a bank notice or turn to the nearest branch. In this case we agree on the conditions of repaying the insufficient sum separately.