Consumer loan – financing for larger purchases

Borrowing is an important decision involving risk.

To make a well-considered decision:

• consider for what purpose and how much you need to borrow, and how you will repay the loan,
• provide us with accurate and sufficient information,
• clarify all costs associated with borrowing,
• consider that your financial situation may worsen and how you would repay the loan in such circumstances,
• carefully review all loan-related documents (the agreement, informative materials, etc.) before signing them.

If you encounter repayment difficulties, contact us as soon as possible so that we can agree on a suitable solution.  

1. Creditor:

AS “SEB banka”, registration No 40003151743
Elizabetes iela 95, Rīga, LV-1050,
info@seb.lv
+371 26668777
+371 67779988  

2. Purpose of the loan and additional conditions

The loan may be used for:

• home renovation and furniture,
• purchase of a vehaicle,
• improving home energy efficiency,
• environmentally friendly expenses,
• travelling,
• medical expenses,
• restructuring existing liabilities with SEB,
• purchase of real estate,
• other consumer purposes.

Additional conditions:

• When using the consumer loan for the purchase of a vehicle (passenger car, motorcycle, tricycle, quadricycle or moped), the vehicle must be registered in your name with the Road Traffic Safety Directorate within 2 months from the date of disbursement of the consumer loan.
• When using the consumer loan for improving home energy efficiency, we may request a document verifying the purchase to ensure that the funds are used in accordance with the intended purpose of the loan.
• When using the consumer loan for the purchase of real estate, the property must be registered in your name in the Land Register within 90 days from the date of disbursement of the consumer loan.

3. Standard European Consumer Credit Information

Before entering into the loan agreement, we will provide you, for information purposes, with the Standard European Consumer Credit Information sheet containing information on the most important terms and conditions of the Agreement. Please carefully review the information provided in this information sheet.

4. Duration of the loan agreement

The loan repayment term may be selected from 1 to 7 years.

5. Loan amount

From 1000 EUR to 25 000 EUR 
From 3000 EUR to 25 000 EUR (for the purchase of real estate)

6. Loan currency

We issue the loan in euros.

7. Interest rate

A fixed interest rate applies to the consumer loan. This means that the interest rate specified in the loan agreement remains unchanged throughout the term of the agreement. For certain purposes of the loan, the loan agreement may require a specific condition to be fulfilled. If this condition is not fulfilled within the term specified in the agreement, the interest rate may be increased by the amount specified in the loan agreement.

SEB calculates interest on the outstanding loan principal.

The interest rate specified in the loan agreement is determined by evaluating the individual solvency of each customer.

8. Total amount payable and total cost of the credit  

The total amount payable by you consist of the loan amount and the total cost of the credit. The total amount payable includes:

• loan principal and interest payments,
• a one-off commission fee for the processing of documents, which SEB will withhold from your current account on the loan disbursement date,
• a monthly commission fee for servicing the current account in accordance with the General price list of SEB for individuals (hereinafter – the Price list for individuals).

9. Representative example of the annual percentage rate of charge

The annual percentage rate of charge is the total cost of the credit to the borrower calculated at the time of entering into the loan agreement, expressed as an annual percentage of the loan amount. SEB calculates the annual percentage rate of charge assuming that:

• the loan is disbursed on the date of entering into the loan agreement,
• the loan agreement remains in force until the maturity date specified in the agreement,
• the interest rate remains unchanged throughout the term of the loan agreement,
• the parties perform their obligations in accordance with the terms and conditions of the loan agreement.

Representative calculation example:

The monthly payment is 106.76 EUR, assuming that the loan amount is 5000 EUR, the term of the loan agreement is 5 years, the fixed interest rate is 10 %, the commission fee for issuing the loan is 90 EUR, and the commission fee for servicing the current account is 1 EUR per month. The annual percentage rate of charge is 11.93 %. The total amount payable by the borrower is 6556.53 EUR. This example is provided for information purposes only, and each customer’s situation is evaluated individually.

10. Disclaimer on possible further costs

If you wish to amend the terms and conditions of the loan agreement during its term, you will be required to pay a commission fee for amending the agreement in accordance with the Price list for individuals in force at the time of the amendment.

11. Loan repayment

Each month, SEB will withhold the loan principal and interest payment specified in the loan agreement from your current account. You must ensure that sufficient funds are available in the account on the payment date.

Example:

The loan amount is 5000 EUR, the term of the loan agreement is 5 years, the fixed interest rate is 10 %, and the monthly loan principal and interest payment is 106.76 EUR for 60 consecutive months.

This example is provided for information purposes only, and each customer’s situation is evaluated individually.

12. Joint and several liability of several borrowers

If there is more than one borrower, they are jointly and severally liable for fulfilling the agreement. This means that each borrower is responsible for fulfilling all obligations under the credit agreement in full.  

13. Early repayment

You have the right to repay the loan in whole or in part before the maturity date at any time and at no additional cost. In the event of full early repayment, SEB will, within 10 business days, recalculate the commission fee for the processing of the documents in proportion to the actual number of days the loan was used and refund the overpaid part of the commission fee to your current account.

14. Right of withdrawal

You have the right to withdraw from the loan agreement within 14 days from the date of entering into the loan agreement without giving any reason. To exercise the right of withdrawal, submit a notice to SEB via the internet bank or at a customer service point within the specified period.

If you exercise the right of withdrawal, you must repay to SEB the full amount of the loan received and the interest accrued for the period during which the loan was used, without delay and no later than 30 days from the date on which the notice of withdrawal was sent.

15. Additional services for receiving the loan

To receive the loan, or to receive it on the terms offered, you must open a current account with SEB. If two borrowers take out the loan jointly, each borrower must open a current account with SEB. A monthly account maintenance fee applies to each current account in accordance with the Price list for individuals.

16. Consequences of non-performance of obligations

If you fail to make a payment when due, SEB will, in accordance with the loan agreement, charge late payment interest on the overdue loan principal payment and a contractual penalty on overdue interest or commission fee payments.

We will first send you a reminder regarding the overdue payment. Information on debt and payment delays may be entered in public and private debt history databases in accordance with the procedure established by applicable law.

17. Unilateral termination of the loan agreement and the consequences thereof

If the obligations under the credit agreement are not met, SEB may, in the cases specified in the agreement, unilaterally terminate the credit agreement and require immediate repayment of the full outstanding loan amount, accrued interest and any other related charges. You will also be required to cover debt collection-related costs.