Loan for students – alternatives to student loans and consumer credit

A student's best option is Kela's state-guaranteed student loan – the cheapest loan type in Finland. Consumer loans should only be considered for one-off purchases.

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A student's need for a loan typically arises during studies from unexpected expenses or normal living costs if the student grant is not enough. In Finland, a student has a significant advantage: the state-guaranteed student loan is the cheapest loan in the country (rate 1–3 %), and there is a student loan compensation if you graduate on time.

Student loan – the primary option

Maximum: 650 €/month for a higher education student
Interest: typically 1–3 % during studies (the cheapest in Finland)
State guarantee: Kela guarantees the loan to the bank
Student loan compensation: if you graduate on time, Kela pays part of the loan
Repayment starts about 2 years after graduation

Other options

Consumer loan

Suitable for one-off purchases (computer, moving, study supplies). Effective annual rate usually 8–20 %, significantly more expensive than a student loan.

Kela benefits and support

Before a loan, check Kela's housing allowance, student grant, sickness allowance, etc. Some do not need to be repaid.

One-off credit or flexi credit

For smaller urgent needs. The effective annual rate can be significant (10–20 %).

Family loan

Often interest-free from parents or close relatives – you save significantly on interest costs.

Checklist for students

Use the student loan first – it is significantly cheaper than a consumer loan
Only draw as much student loan as you need (but the post-graduation compensation rewards taking it out)
Build financial skills during your studies – budgeting, saving, investing
Avoid instant loans – they are the most expensive loans
If there are financial problems, contact your institution's financial counselling or the municipality's financial and debt counselling

Lenders suited to you

Creditstar

Fast

Loan amount: 100 € – 15 000 €
Rate from: 14,9 %
Loan period: 1 kk – 6 v

Apply with Creditstar Read Creditstar review

Ferratum

Well-known

Loan amount: 100 € – 20 000 €
Rate from: 17,5 %
Loan period: 1 kk – 6 v

Apply with Ferratum Read Ferratum review

Instabank

Flexible

Loan amount: 500 € – 50 000 €
Rate from: 15,9 %
Loan period: 6 kk – 15 v

Apply with Instabank Read Instabank review

Frequently asked questions

Why is the student loan a better option?

The student loan interest rate is typically 1–3 % and it is state-guaranteed. For comparison: a consumer loan's effective annual rate is usually 8–20 %. The student loan is almost always the cheaper option.

Can I get a consumer loan alongside student aid?

Yes, if you have had regular income and clean credit. The loan amount is limited by your income level.

Is there an age limit for students getting loans?

All Finns over 18 can apply for a loan. Some lenders require a higher minimum age (20 or 25 years).

How does student loan compensation work?

Kela pays off part (up to several thousand euros) of your student loan if you graduate within the time limit and have drawn at least a certain amount. Check the terms on Kela's website.

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