In the most discerning sense of the payday credit, the vast majority of us are understood as a credit to cover the cost of training. The most common type of payday loan is a payday loan with a state guarantee. In this case, the credit is available to both full-time and part-time students in Latvian and foreign accredited educational institutions.
A payday loan with a state guarantee is essentially a commercial loan, which, for the time being, can only be obtained in banks. When receiving a payday loan in one of the Latvian commercial banks, the student does not have to worry about repayment of the loan during the whole payday period and the first 11 months after the completion of the studies. The repayment of the payday loan and interest will only start in the 12th month after graduation.
Credit for students
Loans for students are not the same as payday credits. Student credit is a credit for a student’s daily expenses, such as rent, food, money for payday materials, etc. This loan can also be obtained with a state guarantee.
The conditions for repayment of the loan are similar to those for a payday loan – 12 months after completing the studies, both the principal and the interest on the loan must be repaid. The only difference between a student’s credit and a student loan is that student loan interest payments should start after graduation without a 11-month break.
What is a Student Loan?
A student loan is a credit for the student to cover his daily expenses. These expenses are most often rent, payday maturity and student spending. Only full-time students are eligible for this type of credit, but there are exceptions in cases where the student has care.
The student can receive this type of credit from 10 to 12 months a year.
Payday loan collateral
To receive a payday loan with a state guarantee, the person will need to find a guarantor. The guarantor is the person who undertakes to meet the credit obligation if the borrower is unable to do so. In order for it to be a guarantor, this person must comply with a number of parameters. You can read more about these conditions here .
Payday credit is intended to cover tuition fees. This type of credit can be received by both full-time and part-time students and is transferred to the account of the institution. Unlike student loans, no interest is charged on payday credits during the course of studies and repayment of the principal amount of the loan must start one year after graduation.