Questions and answers

1. What should I know before applying for a student loan?
2. What should I know after my student loan is approved?
3. What are up front costs and what do they include?
4. How can I calculate the total cost of my loan?

1. What should I know before applying for a student loan?

You can obtain a student loan if you are aged 18 to 65, are in work or have other sources of income.

Student loans are available given that a collateral is provided. The collateral may take the form of:

  •  Personal guarantees
  •  Assignment of life insurance policies
  •  Blockage of deposit accounts
  •  Mortgaging property.

The interest rate is determined by the collateral provided. If asset-based collateral is provided (mortgage, blocked deposits), the interest rate will be lower; where no real collateral is offered (e.g where only personal guarantees are offered) the interest rate will be higher.

2. What should I know after my student loan is approved?

  •  To make things easier for you, you can give us written instructions for the instalment to be paid automatically from your current account.
  •  You must pay your instalments on the date specified in the loan terms and conditions. Make sure that you set a date that suits you by discussing this matter with your personal banker. If that date needs to be changed, contact your personal banker in good time to make the necessary arrangements.
  •  If you delay paying instalments, additional charges will be imposed in the form of a higher interest rate for the amount not paid. To avoid extra charges, make sure you pay your loan instalment as and when agreed.
  •  If your financial circumstances change and you can no longer keep up your instalment repayments, contact your personal banker in good time to work out a new repayment schedule.

3. What are initial costs and what do they include?

All student loans are subject to up front charges which are payable once when the loan is taken out.

Bank initial charges

  •  Arrangement fees for preparing and evaluating your application.
  •  Documentation fees: The charge depends on the documents required for the specific loan. Ask your personal banker for more information.

Government charges: (These charges are usually specified by law)

  •  Mortgage registration fees payable to the Land Registry.
  •  Charges for loan documentation stamp duty, payable to the Commissioner for Stamp Duty.

Third party charges:

  •  These charges are for valuations carried out for the Bank by approved valuers where a property mortgage is offered as collateral, or are charges in connection with life insurance.

4. How can I calculate the total cost of my loan?

Find our your loan’s APR

  •  The APR (the Annual Percentage Rate) is the total cost of your loan (including interest and all bank charges you have to pay) expressed as an annualpercentage of the amount you have borrowed.
  •  The APR gives you an overall picture of the total cost of your loan and is the best tool available to you to compare different products from the same Bank or from other banks.
CONTACT US 800 00 800 / (+357) 2212 8000 EMAIL US