OREANDA-NEWS. On August 20, 2009 Having been picked up in a tender AB DnB NORD Bankas has signed an agreement with the Ministry of Finance, that will open a possibility for the bank to extend government backed credits to students. AB DnB NORD Bankas will extend loans to finance studies, part-time studies abroad or to cover living expenses. The loan amount will depend on the field of study, reported the press-centre of DnB NORD Bankas.

Those students who are not financed by the State will be eligible for the government backed credits as provided in the Law on Science and Studies. The contractual conditions stipulate that AB DnB NORD Bankas’ credits will be available in Litas or Euro and their interest will be linked to 3-month VILIBOR or EURIBOR.

“We are ready to grant the credits once the list of eligible students is drawn by the Lithuanian State Science and Studies Foundation. We expect that first student loans will be extended already in October,” – says Evaldas Ruzgys, Manager of AB DnB NORD Bankas Product development department.

Those students who are willing to take a credit backed by the government guarantees will have to fill in the set-form application on the website of the Lithuanian State Science and Studies Foundation www.vmsfondas.lt. Having reviewed applications received, the Fund will draw up a list of students eligible for credits with government support and the students eligible will be welcome to apply to AB DnB NORD Bankas for a credit.

Under the student’s application AB DnB NORD Bankas’ credit for financing studies will be paid out in two tranches – the first one for autumn semester not later than within three days after signing of the agreement, the second - for spring semester- no later than by 15 March of the study-year. The bank will transfer money to an account of the science and studies institution. A credit to cover living expenses will be disbursed in equal monthly instalments to the student’s personal account. For part-time studies abroad the bank will extend the entire credit by transfer to the beneficiary’s personal account. Students will be entitled to refuse to draw down a full credit or its any part at no additional cost.

The credit shall be extend in all AB DnB NORD Bankas outlets across the country. The agreement also provides that credit interest will be paid from the day of making a credit available, whereas the principal amount will be due after a year from the end, termination of studies or exclusion from the study enrolment list. Repayment of the entire loan will be due no later than in 15 years.