Loan, leasing – questions and answers

On your full-version Internet bank, send a message to the bank, in the section Messages / All messages /  New application / Application from a sample, selecting the subject Application for Early (Partial) Repayment of Loan

To get a consultation regarding your current loan, you need to apply for it on your full-version Internet bank, by writing a free-form application, stating your question, in the section Messages / All messages / New application. An answer will be given in the same section, in form of a message.

To get a consultation regarding a new loan, fill in a credit application form and our experts will contact you. 

There are two reasons for changing the pledgor in majority of cases:

• in case of selling the real property;
• changing the owner of mortgaged real property to spouse, borrower or guarantor.

Reconstruction of real property (including replanning, reconstruction, renovation) is permitted only in compliance with the procedure established by laws and regulations, with the approval of the respective institutions.

Prior to turning to the building authority, you will need our consent. You can write the application for receiving the consent on the Internet bank, section Messages.

Commission fee for Luminor’s consent to actions with mortgaged property: Mortgage loan and Private loan.

Write an application in the Internet bank section Messages / All messages / New application / Application from a sample and select the subject regarding payment holidays.

Please, do not hesitate to contact us as soon as any concerns arise regarding difficulties to make payments. We will review every application individually and seek the most appropriate solution to suit every customer.

On our website, in the section Loans, choose the loan or leasing that suits you most and fill in an application form. Our experts will contact you to clarify all the necessary information.

You can view the necessary information on Internet bank, section Loan and Leasing, by selecting the option of detailed information.

Write to lizings@luminor.lv.

The funds intended for repayment of consumer loan must be provided in your current account on the date of repayment specified in loan agreement. On this date, we will automatically repay the loan according to the loan schedule.

The funds intended for repayment of mortgage loan must be provided in your current account on the date of repayment specified in loan agreement. On this date, we will automatically repay the loan according to the loan schedule.

An interest is a price that a customer pays for the use of money. Housing loans interest rate may be:

• variable interest rate that consists of 3, 6 or 12 month EURIBOR rate + individual interest margin

If Euribor is negative, it is deemed to be equal to zero.

• fixed interest rate that may be set for a period of up to 5 years

On expiry of this period the interest rate will be either automatically changed into variable interest rate or a fixed interest rate may be set again by agreement of the parties.

A margin is a difference between the final determined interest rate for the customer and base interest rate (for instance, Euribor) which bank receives as a fee for the provided services, finalized tasks and the potential risk.

Euribor is a Euro Interbank Offered Rate at which eurozone banks offer to lend funds in euros to other eurozone banks. EURIBOR is published by the European Money Markets Institute (EMMI).

For more information on EURIBOR please see here.

Euribor interest rate can change (increase or decrease) depending on the market situation.

On the basis of historical data, the highest value of the most frequently applied interest rate of the 6‑month Euribor was ~5.5 %.  

You can find this info in your internet bank​'s section "Loans and leasing", filter loan contract and click "Detailed information".

Choosing a fixed interest rate over a variable interest rate is a good idea if you want to avoid any possible interest rate fluctuations and thus any possible increase in your loan instalments. For both new and existing mortgage loans, you can select fixed interest rate for a period of up to five years. This means that interest rate will not change during the selected period of time and the customers who chose this type of interest rate will pay fixed monthly instalments that will remain unchanged until the date set in the agreement with the Bank.

With fixed interest rate, your monthly loan instalments will not be affected by economic fluctuations such as the sharp rise of the benchmark EURIBOR rate. Once the fixed period expires, the fixed interest rate will convert to the variable interest rate in accordance with the terms and conditions set in the agreement.

If you decide to choose fixed interest rate, you will need to complete a free form application in your internet bank: Letters / New letter / Free form application. As soon as we receive your application, we will contact you to discuss and agree on individual terms and conditions.

The fee is calculated as compensation for potential costs of the Bank directly linked to the early repayment.

The fee is calculated according to the formula: I = (ratio K * P),
where I – early repayment fee;
P – loan amount being repaid early;
Ratio K – value calculated by the Bank which depends on the financial market interest rates change, the rest of the period to a fixed rate expiry of the loan agreement and the final repayment date.

In case the interest rate under the agreement is fixed and its validity is terminated as a result of changing the terms and conditions of the agreement, then an additional fee is applied which is equal to the early repayment fee applied to loans with fixed interest rate.

In such cases, the calculation of the fee is based on the outstanding loan amount but not on the pre-paid loan amount. For the purpose of application of this fee the validity of the fixed interest rate is considered to be terminated in the following cases:

• the fixed interest rate is changed into the interest rate changed on a 3, 6 or 12 month basis;
• the fixed interest rate is changed into a lower fixed interest rate;
• the loan currency is changed;
• the effective period of the fixed interest rate is shortened;
• the loan amount provided by the agreement is reduced.

You will need to complete a free form application in your internet bank: Letters / New letter / Free form application. As soon as we receive your application, we will contact you to discuss and agree on individual terms and conditions.

You can find more info in frequently asked questions or send us a message via internetbank.

Fill in the application to receive a structured consultation based on your specific situation regarding the possibilities of obtaining a loan.

The maximum monthly loan payment is calculated taking into account the ratio of the total monthly loan payments to your monthly net income. Up to 40 % of monthly income may be used for loan payments. 

For customers with monthly income above € 1 300, this ratio may exceptionally be higher, provided that there are other liabilities that will be settled soon (maximum within one year).

Insufficient income, negative records in the credit history.

Within the creditworthiness assessment process, the Bank assesses the following:

• regular monthly income
• present liabilities and the underlying monthly loan payments
• the number of dependents and, if necessary, the total household income and expenditure
• credit history

When calculating the creditworthiness, the Bank checks the following:

• information from income databases (SSIA and/or SRS)
• information on credit liabilities and repayment quality (Bank of Latvia Credit Register, Credit Information Bureau, CREFO)
• databases required for monitoring the prevention of money laundering and terrorist financing

What databases does the Bank check when assessing my creditworthiness?

On the product type, the transaction amount and the credit risk level of the transaction.

The credit history is the information about the customer's present and past credit liabilities and the quality of repayment.

Customers who receive the national minimum wage cannot get a mortgage loan. When calculating the creditworthiness, the Bank takes into account the subsistence minimum for each borrower and each dependent. The subsistence minimum for a mortgage borrower is higher than the national minimum wage (net). 

The credit rating indicates the probability (%) that the customer will not be able to timely meet his/her loan obligations in next 12 months. The rating is determined by using statistical models, taking into account the customer and transaction related information.

The rating for a mortgage loan can be improved by choosing a shorter loan repayment term (not exceeding 20 years) and providing more co-financing (above 30%). Other criteria cannot be improved as they relate, for example, to the client's length of service, industry and the like.

There are no elements for consumer credit that would allow to improve the rating, as it consists of various customer characteristics at particular moment.

The source of income influences the credit rating, however, the credit rating is based on a set of several factors, and the source of income is not the most important element that improves or worsens the credit rating.

The credit rating instrument is designed to enable the Bank to manage its loan portfolio and related costs (capital requirement costs, provisions) more efficiently. The credit rating model embodies calculations based on statistical methods that allow to identify risky transactions that may cause losses in the future and thus adversely affect the Bank's financial performance and credit rates for new transactions. The credit rating provides an opportunity to develop a pricing policy that ensures lower added rates for low-risk customers and higher rates for high-risk customers.

You can see the loan repayment schedule in the Internet bank, section Loans and Leasing.

To change the monthly payment date, send a free-form application via Internet bank in section Messages / New application.

To change the account from which you make your monthly mortgage loan payments, send a free-form application via Internet bank in section Messages / New application.

Early loan repayment is free of charge and can be applied for via Internet bank, in section Messages / New application by writing an application using the application from a template and selecting the subject: Application for an early repayment of a loan (any portion thereof).

There are two ways to defer payment of the principal amount, namely:

• If the agreement provides for the possibility of deferring the principal amount, it can be applied for via Internet bank, in section Messages / New application by writing an application using the application from a template and selecting the subject: Payment holidays according to credit agreement.
•  In the event of solvency problem, it can be applied for via Internet bank, in section Messages / New application by writing an application using application from a template and selecting the subject: Postponement of principal amount of the loan.

Early loan repayment is free of charge and can be applied for via Internet bank, in section Messages / New application by writing an application using the application from a template and selecting the subject: Application for an early repayment of a loan (any portion thereof).

Credit statements and bank consent can be applied for by filling out the application form.

To apply for a change of the loan repayment term, send a free-form application via Internet bank in section Messages / New application. It is not possible to change one month repayment date.

We assess the situation of each client individually. To apply for the release or change of guarantor, send a free-form application via Internet bank in section Messages / New application.

We assess each situation individually. To apply for a collateral change, send a free-form application via Internet bank in section Messages / New application.

We assess each situation individually. To apply for release of the additional pledge, send a free-form application via Internet bank in section Messages / New application.

Commission fee for changes in the mortgage loan agreement, according to the price list is € 200.

To increase the amount of the issued loan, the value of the existing loan and the pledged property, as well as the customer's solvency are important. To allow us assessing the particular situation, apply for a consultation on obtaining a mortgage loan.

On Internet bank, section Loans and Leasing. The repayment schedule is available until the next change of the rate when the payments are recalculated, hence the future schedule is not visible.

Historical repayment schedule is not available. Information can be obtained in the form of a statement by filling in an application for a non-standard statement.

Commission fee for the statement according to the price list is € 50. 

The contractual penalty is charged for non-fulfilment of the terms and conditions of the agreement. It can be avoided by fulfilling the terms and conditions of the agreement. The most often failed terms and conditions are the following: the property is not timely commissioned, no up-to-date evaluation is submitted, if the purpose of the loan is the repairing or construction - photographs or report on spent funds is not submitted.

Via Internet bank, section Messages / New application, in the free-form application write that you want to receive a duplicate of the loan agreement, as well as state that you agree with the commission fee. The original of the agreement will be requested from the archive, therefore a commission fee of € 30 will be charged.

You can check your remaining loan payments in the internet bank section “Credit and leasing”. If the mortgage loan is fully repaid, you won’t see any information on an active loan in this section.  

A week after you’ve made your last payment, we suggest checking the above-mentioned internet bank section – if you still see details about an active loan, please get in touch with us.  
 
If you need a reference about the loan you’ve repaid, please submit an application for receiving one. Getting a reference is a paid service as per our pricelist. 

As the pledgee, we initiate the mortgage without the involvement of the borrower. We will submit the request for the discharge to the Land Register (Zemesgrāmata) electronically. The Land Register will process the request in approximately 1–2 weeks. Please contact us if within 2 weeks the mortgage has not been discharged.

We usually transfer information to the Credit Register of the Bank of Latvia within 1–3 business days. We transfer information to the Credit Information Bureau three times a month.

You can check it on zemesgramata.lv under “My Data”. You won’t receive any additional mortgage discharge confirmation from us.

After the mortgage has been discharged, you don’t have to align any future actions with your property with us.

The insurance policy is valid until its expiry date. You can turn to your insurance company to change the beneficiary or arrange to have the policy ended prematurely.

We’d be happy to continue our partnership with you (you can take a look at our services on our website), however, if you have decided to close your accounts with us, please submit an application or send us a free-form message in your internet bank under “Messages”. 

By submitting a free-form application in the internet bank and specifying all information – agreement number and date. Fee for making amendments according to the price list – EUR 20.

By submitting a free-form application in the internet bank and specifying all information – agreement number and date. Fee for making amendments according to the price list – EUR 20.

Yes, it is possible and it does not cost anything extra. To apply for early repayment of the loan, connect to the full version of the internet bank, select section Messages - New application - Application from template and enter the required information.

You can apply for a loan repayment pause by completing an application in the internet bank in section Messages - New application - Application from template and entering the required information.

You cannot receive an additional amount. However, it is possible to apply for a new consumer loan with or without repaying the existing consumer loan. Apply for a loan here.

Each loan application is evaluated individually. Yes, there may be situations where we ask you to submit an account statement in accordance with the Loan Evaluation Policy.

No.

Yes.

Yes, it is possible to receive a loan, but you will also have to open a current account with Luminor.

Yes, please submit application here.

No, a refinancing product is not available with Luminor yet.

In case of financial leasing, you can see the remaining value in the last monthly invoice (below). If you have an operating lease, please write to lizings@luminor.lv and we will give you an answer.

You have to write free-form application with a request to prepare the final calculation. You can write the application using the Internet banking correspondence or by sending an e-mail to lizings@luminor.lv.

For operating leasing agreements, the balance does not appear in the Internet bank because the Operating Leasing Agreement provides for the lease of the leasing object, returning the leasing object to the purchaser at the end of the period. Information about the monthly invoice appears in the Internet bank at the beginning of each month.

Added interest on the use of cash resources - this is the amount calculated for the use of the leasing object from the date of its delivery until the 1st day of the next month and is included only in the first monthly invoice.

It is important to understand which country you want to travel with a Luminor Leased vehicle. If the country is located in the territory of the European Union, European Economic Area and Schengen area, then the Lessee is entitled to leave without special consent or authorization of Luminor Līzings SIA, but in this case, the Lessee must make sure that the vehicle is insured in the relevant territory. If the country is not located in the EU, EEA or Schengen area, then the written consent or authorization of Luminor Līzings SIA must be obtained and the vehicle must be insured in the respective territory.

It should be noted that the Lessee must, among other things, comply with the laws and regulations of the country of entry regarding the terms of maintenance.

If you want to redeem the leasing object in your own name, you must write a free-form application in Internet banking correspondence or by sending an e-mail to lizings@luminor.lv with a request to prepare the final calculation of your contract. Once the payment has been received from you, you will be able to re-register the car in your name and further plan its sale to another person. The final calculation can be prepared immediately for a third party, in which case you must fill in the application and send it to us at lizings@luminor.lv. In this case, after receiving the payment from the third party we will be able to transfer the ownership of the leasing object to the buyer of your choice immediately.

When concluding the leasing agreement, you were also issued a payment schedule for the entire leasing period - based on this, you can plan your monthly payments. You can see the current month's billing information in your Internet banking, in the section Loans and leasing.

The answer is usually provided within one working day from the moment when all the requested information and documentation is submitted to Luminor Leasing.

Yes, we finance both machinery and various equipment, but in order to give you a specific answer, please fill in the leasing application on the website Leasing application for a natural person or Leasing application for corporate customer.

The maximum age of the car at the end of the financial lease term is 13 years, at the end of the operational lease term - 10 years.

We finance vehicles imported from abroad, but we evaluate each case separately.

In case of financial leasing, the leasing object becomes the property of the client, while in case of operational leasing the client leases the leasing object and the leasing object is repurchased by the buyer or the leasing object is purchased by the client (if Luminor Līzings SIA agrees).

Each client's request is considered individually, evaluating various aspects, so please fill in the application for a new lease Leasing application for a natural person or Leasing application for corporate customer, so that we can give you an accurate answer about the lease amount.

Within five working days after the payment of the last invoice, the information is automatically sent to the CSDD and an informative e-mail is sent to you, which describes all further steps for re-registration of the leasing object.

You have the opportunity to choose the option "other" and specify the car make.

We invite you to check the last payments made for the leasing object and compare them with the issued invoices. However, if you find a discrepancy, please contact the Customer Support Service by phone +371 67 17 1880.

We recommend that you apply for a consultation to find out about financing opportunities. The creditworthiness calculator can also help, click here. Without providing all the necessary information, no decision will be made.

An overpay/debt is an amount that is overpaid or overdue at the time of invoicing.

After fulfilling the obligations of the contract, “Luminor Līzings” SIA shall place a mark in the CSDD register, as well as inform the client by sending an e-mail with instructions on how and how fast the client must act.

In case of questions or uncertainties, the customers of Luminor Līzings SIA are invited to contact the Customer Support Service by phone +371 67 17 1880.