-

Bank loan

Suitable option when you need financing of over 20,000 euros and have collaterals

Take out a bank loan to finance somewhat bigger expenses – whether it is renovation, vehicle or another bigger purchase.

  • Secured Bank loan is often a cost-effective option

    You may get a better interest rate for your loan when you use collateral for your loan.

  • Large loan – low interest rate

    A bank loan is a suitable choice when you need financing of over 20,000 euros. Secured loan is typically a lower-cost option than unsecured loans.

  • Owner-occupied home typical collateral

    In addition to residential property, investments, savings and forest property can be used as collateral for a bank loan, whereas a car or consumer goods, such as electronics, aren’t eligible as collateral. 

Apply for bank loan or consent to joint application

Start a bank loan application or continue a previously started application

Apply for bank loan

Approve a joint bank loan application started by the other applicant

Go to consent

Start a bank loan application or continue a previously started application

Apply for bank loan

Approve a joint bank loan application started by the other applicant

Go to consent

This is how you apply for a bank loan:

  1. Fill in a loan application online

  2. The application is not binding on you

  3. You will receive a loan offer that suits your situation

 

Secured bank loan:

  • You can apply for a bank loan starting from 20,000 euros, with no upper limit.
  • You’ll need collateral for the loan: a home that you own, investments, savings or forest property.
  • Bank loan is often a lower-cost option than unsecured consumer loans because collateral helps secure loan repayment to the bank. 
  • A bank loan will earn OP bonuses to OP cooperative bank owner-customers.
  • You can also include loan protection insurance or an interest rate cap in your bank loan.
  • If you use a bank loan to buy a motor vehicle, its ownership will transfer directly to you. Often the finance company will own the motor vehicle bought on hire purchase.

Bank loan repayment

  • We’ll customise a bank loan repayment plan for you. You can also discuss a repayment holiday or loan modifications with us if you need to readjust repayment midway through the loan term to better suit your life situation. 
  • You can pay off your loan early any time. The loan terminates when the last instalment has been paid. 

What is used as collateral for a bank loan?

In general, residential property (such as an owner-occupied home, a buy-to-let home or a holiday home), investments or forest property are used as collateral. An owner-occupied home is eligible as collateral if some of the loan taken out to buy it has already been repaid or if the home was bought partly or entirely with savings. A car or consumer goods, such as electronics, aren’t eligible as collateral for a bank loan.

Bank loan may be a suitable solution for consolidating loans

Have you thought of transferring your loans to a single bank? It pays to shop around for loans: you can find out whether you can get a loan better suiting your needs at a lower cost than your existing loans.

Can I get a Bank Loan even though OP is not my main bank?

If you are not our customer yet, you can apply for a Bank Loan online with another bank’s user ID. When you apply for a bank loan with us, ask for an offer for your other banking matters too. This way, you can get access to a comprehensive range of banking services that suit your particular needs. Learn more about OP cooperative bank’s many owner-customer benefits. The more you use our services, the more you benefit.

Security in case of unexpected events

If something unexpected happened, how would you cope? By taking out protection for your loan, you ensure that you will be able to repay your loan even if you face unexpected challenges. You can protect a secured bank loan by, for example, taking out loan protection insurance or interest rate cap.

Example calculation: A bank loan is one-off credit. If the 12-month Euribor is 2.356% (December 3, 2024) and the loan’s interest rate is a 3.9% margin plus the 12-month Euribor, the annual percentage rate of charge on a bank loan of 20,000 euros with a five-year loan term will be 7.1%. A monthly servicing fee of 2.50 euros per month will be charged. An origination fee of 120 euros will be payable when the loan is drawn down. The estimated total amount payable will be 23,661.66 euros.

This calculation is based on the assumption that the entire loan has been drawn down, the loan interest rate, fees and charges are constant throughout the loan term, and the loan is repaid in equal instalments of 389,86 euros each month. The bank loan is granted by an OP cooperative bank.

Collateral Collateral

You are eligible to apply for the secured Bank Loan if you have regular income in terms of pay or pension, have sufficient financial standing, have managed your personal finances well and can provide collateral.

Why is collateral needed?

Banks require collateral to ensure that loans are repaid on time. Having to pledge collateral for the loan can also benefit you, as the costs of a secured loan are often lower than those of an unsecured loan.

What can be used as collateral?

You can use as collateral, for example, an owner-occupied home, a summer cottage, deposits, securities or a forest estate. Homes are the most popular type of collateral. If you have repaid instalments on your earlier loans, such as a home loan, you may have spare collateral and can use that as collateral for your new loan.
  
How much collateral is needed?

The collateral value of your collateral is always calculated on a case-by-case basis. Different types of collateral have different calculated collateral values.
 
Ask more about collateral

When applying for a loan, you don’t yet need to have a clear idea of what you intend to use as collateral. You can discuss it with our expert after having submitted the application. We’ll help you determine the value of your collateral, if needed.

 

Loan costs interest rate, effective interest rate, markup, service fee

Loan costs consist of the reference interest rate, bank's markup and service fees related to loan repayment. In addition, loan drawdown and any possible partial drawdowns are subject to a charge based on the bank's list of service charges and fees.

The Bank Loan markup is determined on a customer-specific basis by, for example, collateral lodged, repayment capacity and other customer relationship. Our loan offer shows you the effective interest rate of the loan which you can use to compare any other possible loan offers. The loan drawdown and servicing costs are taken into account in the effective interest rate.

A monthly service fee of €2.50 is charged for the bank loan, and an origination fee of maximum €120 is charged when the loan is drawn down. The loan interest is the 12-month Euribor rate + the markup you have agreed on with the bank.

Loan repayment repayment method, monthly repayment, due date

Your bank agrees with you on the repayment method and the monthly repayment. You can choose a due date that suits you best. The recommended loan term for the secured Bank Loan is a maximum of 5 years. You can discuss the loan term with your bank if the period of five years seems too short.

The loan terminates when the last instalment has been paid.
Loan repayment holiday and other changes Repayment instalment, payment date, extra repayment

You can apply for a repayment holiday for your Bank Loan on the op.fi service, during which you will pay only interest. You can also apply for a change to the repayment instalment and date. Such changes are subject to a charge based on the bank's list of service charges and fees.

Extra repayment

You can amortise your loan in addition to your normal monthly instalment. This extra repayment does not defer the next instalment or payment date. The extra repayment is not subject to a charge.

To make an extra repayment, you need the number of your loan which you can find in the Loans section. After that, go to "New payment" under the Daily banking services section and enter your loan's number in the "Payee's account or IBAN" field. Then proceed as instructed. The amount of your extra repayment is debited to your account on the same day.

If you have a fixed-rate loan, please contact the bank that has granted the loan because extra repayment may be subject to a charge under the general loan terms and conditions.

Loan protection insurance covers the most significant risks

During the loan term, life can bring unexpected situations in which you have difficulties in paying your loan. By taking out loan protection insurance, you can secure the finances of yourself and your family against various risks, such as unemployment, incapacity for work, serious illness, death and permanent disability due to an accident.

The price of loan protection insurance depends on the loan amount, the monthly repayment amount and the policyholder’s age. 

Example of the price of loan protection insurance:

Loan 20,000 euros, loan term 10 years, monthly repayment 173 euros

  • 30-year-old insured person, loan protection insurance premium €10.31/month
  • 50-year-old insured person, loan protection insurance premium €20.11/month

You can take out loan protection insurance when applying for a new loan, or add it later to an existing loan. The insurance may be granted either as individual cover or as joint cover with a co-borrower.

 

Interest rate cap adds security to your loan

By taking out an interest rate cap, you can ensure that the reference interest rate of your loan will not exceed the agreed limit. If the general interest rate level begins to decrease, so will the reference interest rate of your loan. OP provides an interest rate cap of up to 14 years. Its price is determined by the loan amount, the level and duration of the interest rate cap as well as the situation in the fixed income market. 

You can take out an interest rate cap for a loan tied to the Euribor when applying for the loan or add it later to an existing loan. 

 

Owner-customer's OP bonuses and benefits from banking services

As an OP cooperative bank owner-customer, you get OP bonuses that decrease your banking and insurance service charges. As an OP cooperative bank owner-customer, you get 40% more OP bonuses compared to the normal level of 2022. We will continue the familiar benefit until the end of 2025.

OP bonuses come from

  • funds in savings accounts
  • home loans, student loans and secured bank loans
  • mutual fund units and unit-linked insurance
  • paid insurance premiums, such as home and motor vehicle insurance and continuous travel insurance.

OP bonuses are tax-free. Because of that they are automatically used for loan service and origination fees and insurance premiums, among other things.

Read more about OP bonuses

As an owner-customer, you also get significant benefits and discounts. For example, you will get daily banking services without monthly charges until the end of 2025 and interest on your Current Account. Furthermore, you'll enjoy lower saving and investing costs than usual.

See all owner-customer benefits

Terms and conditions, and forms

Take a look at the terms and conditions governing loans, pledges and guarantees. You will accept the terms and conditions of the loan and collateral agreement at the time of signature.

Loan terms and conditions (pdf)

The loan is granted by OP cooperative bank.