RIGA - Starting next school year, SEB Banka will no longer issue state-underwritten study loans, LETA was told by the bank.
Work is under way at the moment to select credit institutions that will issue study loans and student loans, which will now be underwritten by the Development Finance Institution Altum.
"After assessing the resources necessary to implement changes in the current study loan administration process and prepare a new infrastructure, SEB Banka has decided not to apply for the right to issue study and student loans in the 2020-2021 school year," the bank told LETA.
The bank points out that this decision will not affect the study and student loans issued so far - the bank continues to fulfill all the obligations under agreements concluded with the borrowers.
This has been a difficult decision for SEB Banka, given that for ten years it has been the only bank that had the right to issue study and student loans. The bank's current priorities include streamlining remote services, improving procedures, and consolidating its positions in other lending segments, said SEB Banka's head Ieva Tetere.
Since 2010, SEB Banka has been the only bank to provide state-underwritten loans to students.
During the last three years, the bank has issued approximately EUR 27.1 million in 4,534 state-underwritten loans to students. The average amount of a study loan last year was EUR 6,200, while the average amount of a student loan was a little over EUR 7,000.
On June 29 this year, Altum invited credit institutions to apply for the right to issue study loans and student loans, which would now be underwritten by Altum.