LHV starts offering home loans
Today AS LHV Pank, a subsidiary of AS LHV Group, will begin offering home loans to private clients.
Previously LHV has been offering customers loans against the collateral of real estate but now the bank intends to offer home loan more broadly and as one of the main loan products.
According to Erki Kilu, CEO of LHV Pank, introducing the home loan will enable to provide clients with a comprehensive banking service. “For our clients home loan is a very important credit product that people really need from a bank. We are eager to make them an offer,” Kilu said. “We have more than 80,000 private clients and we hope that this step will enable more clients to choose LHV as their home bank,” Kilu added.
“As our banking services are focused more towards active and enterprising people, we have made our home loan product stand out as the most flexible in the market. We offer the opportunity to repay the loan prematurely without any additional fees and allow best terms for a grace period. Our offer will be on market terms and for customers with good creditworthiness we will make an offer at a good price,” Kilu added.
LHV will finance the new loan portfolio at the expense of accumulated deposits. The Bank has built up an internal capability to provide the product with good conditions, and this is also favored by the cost rate of deposits. A high-quality home loan portfolio will allow the bank to earn stable long-term interest income.
As of end of the first half year customer deposits in LHV Bank exceeded the loan portfolio by 218 million euros. Customer deposits totaled 683 million euros. The loan portfolio amounted to 465 million euros, of which retail loans’ volume was 108 million euros. Erki Kilu estimated that the home loan portfolio has the potential to grow into one of the main credit sub-portfolios.
LHV offers home loan as of today. Conditions for obtaining a loan and additional information are available at lhv.ee/kodulaen. Applications can be filled in on the Internet, and one does not have to be an existing client of LHV bank to apply.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus. LHV employs over 250 people and over 100,000 customers use LHV’s banking services. Pension funds managed by LHV have over 170,000 customers.
Phone: +372 502 0786