Holm Bank, which is based on Estonian capital, launched a refinancing loan for private customers, enabling clients to bundle small loans from different financial service providers into a single agreement, making it easier for the client to repay the loans and often reducing the overall loan payment.
Kaspar Kalvet, CEO of Holm Bank, says that the refinancing loan offered by Holm makes it possible to combine small loans and hire purchases into one loan, and gives lenders a good overview of their financial obligations, keeps them in one place and makes it possible to repay the loan by a single payment made once a month.
“In today’s economic situation, people are looking for ways to save and are taking a critical look at their monthly obligations,” said Kalvet. “If you’ve renovated your home, bought furniture and household appliances, you may have a couple of small loans and several hire purchases at the same time, all with different repayment schedules, and it can be difficult to keep track of when to make payments. This is a bothersome and time-consuming process,” he explained.
“More and more clients have approached us asking about the possibility to bring their loans under one agreement and get a clear overview of their monthly obligations. We developed Holm’s refinancing loan to offer them a suitable solution,” said Kalvet and added that clients can choose a payment schedule of up to 10 years and thereby make the monthly payments suitable for them.
According to Kaspar Kalvet, a refinancing loan of up to €25,000 is also suitable for customers who want to get an additional small loan and link their previous loans to a new agreement. “In this case, we conclude a loan agreement with the client for an amount that covers both the existing and the new loan obligations, pay the other credit institutions for the client’s existing obligations and transfer the new loan amount to the client’s account,” he added.
The CEO of Holm Bank believes the refinancing loan is a promising product. “The financial behaviour of Estonian clients is generally good and they know how to assess their ability to meet their obligations,” said Kalvet. “This is also proven by the fact that, despite the steep rise of the Euribor and the cost of living, the majority of borrowers have not run into payment difficulties. A refinancing loan is certainly a product that allows people to take more systematic control of their finances. As the economic trends are quite similar across Europe, we’ll start to see a strong growth of similar transactions in other countries in the future.”
Holm Bank AS is an Estonian-owned bank with an operating licence issued by the European Central Bank. Holm Bank owns the trademarks Liisi and Holm. The bank’s services include term deposits, physical and virtual credit cards, retail and corporate financing and instalment loans. The bank also offers term deposits in Germany and Austria through the Raisin platform and owns Holm Bank Latvia SIA, a financial services provider in Latvia.