Banks, Estonia, Financial Services, Loan, Markets and Companies

While previously LHV has been offering customers loans against the collateral of real estate, now the bank intends to offer home lending more broadly and as one of the main loan products.

Erki Kilu, CEO of LHV Pank, said the introduction of home lending will enable to provide clients with a comprehensive banking service.

"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 the 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 said.

LHV will finance the new loan portfolio using accumulated deposits.

At the end of June, customer deposits at LHV exceeded the loan portfolio by 218 mln euros, with customer deposits totaling 683 million euros and loan portfolio amounting to 465 mln euros, of which retail loans totaled 108 mln euros. Kilu said he believes the home loan portfolio has the potential to emerge as one of the main credit subportfolios of LHV.