Credit line


A loan for making your plans come true

The credit line is a good solution when you need money for somewhat larger urgent purchases or a long-cherished plan. It is also the ideal option if you intend to use the required amount gradually, in parts.

  • The amount of the credit line is between 500 EUR and 12 000 EUR, however not more than an equivalent of 3 salaries.
  • Money is available in the account right after setting up the contract.

Steps towards receiving credit line

  1. Fill out the credit line application via Internet Banking or at any branch.
  2. After submitting your application, a bank employee will contact you in 2 business days' time to arrange the next steps.
  3. Sign the credit line agreement on the Internet Banking site.
  4. After signing the agreement, the money will be transferred to your account at Swedbank.
  5. Congratulations! Now you can materialize your plans.

Eligibility criteria

  • Passport (if not in possession of account with Swedbank);
  • At least 18 years of age;
  • Regular income of at least EUR 500 a month after taxes;
  • Positive credit history (if any loans have been taken out in the past);
  • Total monthly loan payments do not exceed 30% of the total monthly income;
  • Customers who, at the time of issuing the loan, do not receive their income in their account with Swedbank, must ensure, within the following 3 months, that salary or funds equivalent to their salary are transferred to their account at Swedbank.
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.
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