STUDENT LOAN INFORMATION

STUDENT LOAN INFORMATION 1. Data of the creditor Creditor Address Activity licence Telephone number E-mail Fax number Web address Membership in associations Supervisory authority Swedbank AS, registered in the Commercial Register of Estonia, registry code 10060701 Liivalaia 8, Tallinn 15040, Republic of Estonia No. EP-13PO, Republic of Estonia 6310 310 info@swedbank.ee 6310 410 www.swedbank.ee Swedbank AS is a member of the Estonian Banking Association: www.pangaliit.ee Financial Supervision Authority (postal address Sakala 4, 15030 Tallinn, telephone number 6 680 500, fax number 6 680 501, e-mail address info@fi.ee, website www.fi.ee). In its activities Swedbank AS adheres to the sound banking practice: http://www.pangaliit.ee/aktid/pangandustava/ 2. Preliminary information about the loan agreement Before entering into a loan agreement, the borrower must read the terms and conditions of the relevant loan agreement, the General Terms and Conditions of Swedbank AS (hereinafter the bank) and the Principles for Client Data Processing effective in the Estonian companies of Swedbank, and any other terms, conditions and documents that have been referred to in the terms and conditions of the loan agreement to be entered into. As there are certain risks involved in the use of financial services and entry into obligations, the borrower must always make sure they understand the content of the obligations they enter into, incl. assessing whether or not they would be able to perform the obligations they enter into in the event their circumstances change for the worse. Also, the borrower must make sure they understand the terms and conditions of the loan agreement and the risks associated with the obligations they intend to enter into (e.g. deterioration of solvency, increase in expenses, failure to find a job, loss of a job, etc.). The bank advises the borrower to contact the bank or a specialist of the relevant area to obtain explanations, advice or additional information if the borrower has any questions. The Borrower has the right to withdraw from a loan agreement within 14 calendar days of entry into the loan agreement. In order to do this, the borrower must submit a withdrawal application to the above contact address of the bank or in the manner prescribed for forwarding bank messages in the Internet bank. If the borrower uses the right to withdraw from the loan agreement, they must repay the bank both the loan amount and the interest accrued thereon during the period from drawdown of the loan until the repayment thereof to the bank, but not later than within 30 calendar days from the date on which the withdrawal application was submitted. If the borrower fails to repay the loan amount or pay the agreed interest during the agreed deadline, the bank deems that they have not withdrawn from the loan agreement. The borrower cannot withdraw from the loan agreement (except a loan agreement entered into via a means of communication) pursuant to the above procedure if the loan is secured with property. The borrower can obtain information about the fees for banking services, other costs and deadlines from the bank s price list, which is available on the website www.swedbank.ee. The bank has the right to unilaterally change the fees specified in the price list, except the fees stipulated in the legislation that regulates student loans. Any disputes between the parties are resolved by agreement of the parties if possible. If the parties fail to reach an agreement, the dispute concerning banking services will be resolved by a conciliation body (e.g. the Consumer Complaints Committee) or a court. The loan agreement shall be governed by Estonian law; disputes shall be resolved in Estonian courts. This student loan information is issued only for the purpose of information. The terms and conditions contained herein are not binding and the parties proceed from the provisions of the loan agreement when a loan agreement is entered into. 3. Description of the main features of the loan product Type of loan Student loan guaranteed by the state Ceiling of the loan amount or loan to be drawn down The ceiling of the student loan in 2015/2016 is 960 euros for a borrower whose term of study pursuant to the study

programme is up to eight calendar months and 1,920 euros for a borrower whose term of study pursuant to the study programme is at least nine calendar months. The Government of the Republic establishes the ceiling of the student loan amount once a year. The bank informs the borrower of the ceiling of the student loan, the procedure for applying for and issuing the student loan and the relevant deadlines through the media before 1 September in each academic year. Student loan is issued to the extent of its ceiling at every educational level the number of times that corresponds to the standard period of study at the relevant educational level. If the borrower has received a student loan guaranteed by the state at the same educational level during their previous studies, the number of times that the borrower is eligible to a student loan is reduced by the student loan received earlier. Terms and conditions of drawdown, manner and time of receipt of the loan The borrower submits a written application in the format established by the bank in order to receive the student loan (unless the borrower has stated in the principal terms and conditions of the loan agreement that they want the bank to transfer the student loan prescribed for the relevant year to their current account without the prior written application of the borrower). The bank grants the student loan to the borrower who is eligible to the student loan to the extent of its ceiling by transferring the first student loan to the borrower s current account within two banking days of entry into the loan agreement and submission of the documents that prove the establishment of the required sureties to the bank, but not before 1 October in the current academic year. Duration of the loan agreement The duration of the loan agreement is tied to the standard period of the borrower s study and/or the actual period of studies when the borrower is eligible to the student loan. The borrower must start repaying the loan not later than 12 months after completing the entire curriculum in full or after leaving the educational institution for any other reason, if they have not started to continue their studies as a person entitled to the student loan during this period of time. The borrower must repay the entire loan amount including interest if they graduated by completing the curriculum in full during double the standard period of study from the start of the repayment of loan amount, and if they ended their studies for another reason, during one and a half times the period of time spent in the educational institution, but during a period that is not shorter than six months and not longer than the standard period of study multiplied by 1.5. If the borrower has continued their studies as a person eligible to the student loan within 12 months after the end of their studies, they must repay the entire loan amount including interest during the period that begins when the borrower starts repaying the loan and is calculated by adding up the periods calculated as indicated above, but is no longer than 20 years. Repayments and schedule The loan amount will be repaid and the interest paid to the bank in monthly annuity payments on the dates and in the amounts specified in the schedule prepared by the bank. The amounts payable to the bank every month according to a schedule with annuity payments (total loan amount repayment and interest payment) from the date the repayment of the loan amount starts until the date the loan amount is repaid in full are equal (except the last payment made under the schedule, which differs from the other payments due to rounding). The bank prepares the schedule and sends it to the borrower by post to the address stated in the loan agreement or in a later written notice given by the borrower within 45 days after the borrower has graduated from or left the educational institution. The schedule is not signed. If the borrower has entered into a teleservices contract with the bank, the bank has the right to send the schedule to the borrower via the Internet bank or any other electronic channel accepted by the bank. The borrower has the right to obtain a free schedule during the term of the loan agreement. The bank reduces the student loan paid out each time by the amount of interest payable for the previous period until the borrower graduates from the educational institution or leaves it for any other reason. If the bank pays out the student loan in several instalments, the bank reduces each instalment of the student loan paid out by the interest payable. The borrower must start repaying the loan not later than 12 months after completing the entire curriculum in full or after leaving the educational institution for any other reason, if they have not started to continue their studies as a person entitled to the student loan during this period of time. In the year when the borrower does not wish to obtain the student loan at all or before 31 October of the current academic year, or has not complied with the conditions necessary to receive the student loan, the borrower pays the interest due to the bank not later than by 31 October of the current academic year. After the borrower has graduated from or left the educational institution, the borrower pays the bank interest on the outstanding loan amount on the basis of the schedule prepared by the bank. The first interest payment under the schedule must be made within three months following the graduation from or leaving the educational institution. If the funds in the borrower s current account(s) in the currency of the relevant payment are insufficient on the payment dates, the bank has the right to debit the correct amounts also in other currencies by converting the amount at the borrower s expense according to the currency transfer rates effective in the bank at the time of conversion If several currencies are held in the borrower(s) current accounts, the order in which the currencies are converted is determined by the bank. Information about currency transfer rates is available on the website www.swedbank.ee, at the bank s branches or from Customer Services on 6 310 310. Early repayment of the loan amount

The borrower has the right to repay the loan amount or a part thereof to the bank early by notifying the bank thereof in writing two banking days in advance. If the borrower repays the loan amount or a part thereof early, the bank has the right to demand from the borrower reasonable compensation for the damage directly related to the early repayment of the loan amount or a part thereof. The amount of such compensation may not exceed one percent of the loan amount or the part thereof that was repaid early if the period between the date of early repayment of the loan amount or a part thereof and the final repayment date of the loan amount is longer than one year and 0.5 percent of the loan amount or a part thereof that was repaid early if this period does not exceed one year. If the performance of the borrower s obligations is secured with property, the bank has the right to demand additional compensation for damage from the bank if the bank has incurred a greater loss as a result of the early repayment of the loan amount or a part thereof. The compensation claimed from the borrower may not exceed the amount that the borrower would have paid as interest during the period between the early repayment and the final repayment date of the loan amount. Total amount of the payments made by the borrower to repay the loan and bear the total cost of credit The total cost of credit is the total sum of the payments made to repay the first student loan and to cover interest and other fees (incl. the agreement fee) that arise from the agreement, provided that the borrower draws down the first student loan immediately and in full, and it is repaid within one year in twelve equal payments made after equal intervals of time. The cost of insuring the property offered as collateral or the cost of establishing the collateral (notarial and state fees) are not included in the total cost of credit. The total cost of credit is 1,975.81 under the following sample conditions: loan amount 1,920, interest 5% per year, agreement fee 2.56. The amount was calculated on the assumption that the loan amount is drawn down immediately and in full, and repaid within one year in twelve equal payments made after equal intervals of time. Securities required from the borrower The performance of the borrower s obligations under the loan agreement is guaranteed by the surety provided by at least two Estonian citizens or persons who reside in Estonia on the basis of a long-term residence permit or permanent right of residence, or a mortgage on property located in Estonia. The bank has the right to demand establishment of additional security if this is required pursuant to the laws of the Republic of Estonia or the legislation established by the government. If the value of the security has decreased (incl. the economic situation of the surety provider of the borrower has deteriorated) or the surety provider has died, the borrower must establish an additional security for the benefit of the bank immediately after the occurrence of the relevant circumstance. 4. Loan costs and consequences of breaches of the loan agreement interest rate The interest rate of the loan agreement is fixed. The borrower pays the bank interest on the student loans drawn down by the borrower and not repaid to the bank at the rate of 5% per year. The calculation of interest starts on the day the bank transfers the student loan and ends on the day the loan amount is repaid to the bank in full. The bank calculates the interest on the basis of the actual number of days in the calendar month and a 360-day year. Initial annual percentage rate of charge (APR) Total cost of credit expressed as an annual percentage of the credit amount or ceiling The initial APR expresses the annual burden of the costs (interest, agreement fee) arising for the borrower from the use of the first student loan and it is expressed as a percentage of the first student loan provided that the borrower draws down the first student loan immediately and in full, and it is repaid within one year in twelve equal payments made after equal intervals of time. The cost of insuring the property offered as collateral or the cost of establishing the collateral (notarial and state fees) are not included in the initial APR. The initial APR is 5.459% under the following sample conditions: loan amount 1,920, interest 5% per year, agreement fee 2.56. The rate was calculated on the assumption that the loan amount is drawn down immediately and in full, and repaid within one year in twelve equal payments made after equal intervals of time. Ancillary contracts associated with the loan agreement If the student loan is secured with a mortgage established on a property located in Estonia, the borrower must enter into an insurance contract and a notarial mortgage contract in favour of the bank, and pay the costs related to insuring the collateral and establishing the mortgage (notarial and state fees). Contracts of surety must be entered into if the student loan is secured with the surety provided by at least two Estonian citizens or persons who reside in Estonia on the basis of a long-term residence permit or permanent right of residence. The costs related to the ancillary contract are not included in the APR if they are not known to the bank. Entry into the loan agreement is subject to the existence of a current account in the bank. Other costs arising from the loan agreement - refinancing of a student loan: 7; - applying for a student loan for the first time (agreement fee) free of charge in the 2015/2016 academic year; - amendment of the terms and conditions of the student loan agreement (except amendment of the payment date): 7; - amendment of the repayment schedule, except the payment date (frequency of repayments, amendment of the end date of the schedule etc.): 7. No fee is calculated for amendment of the schedule if the repayment schedule changes due to the early repayment of a part of the loan amount; - preparation of a special schedule: 16.

Costs in the case of late payments The borrower must pay default interest on overdue repayments of the loan amount at the rate specified in the bank s price list for each day of delay. The bank establishes the penalty interest rates pursuant to the requirements stipulated in law. The penalty interest rate at the time of this student loan information submission is 0.022 % per day and 8.050 % per year. If the borrower fails to pay the loan amount repayment and/or interest due under the loan agreement in time, they will have to pay the bank the debt processing fee as established in the bank s price list. Possible consequences of breaches of the loan agreement The borrower must inform the bank in writing of every such circumstance within five bank days of their occurrence: - the borrower has left the educational institution (or graduated from the educational institution if the borrower studied in a foreign education institution); - the value of collateral has decreased; - the economic situation of the surety provider(s) has deteriorated or they have passed away; - the actual place of residence or personal data of the borrower and the surety providers have changed; - a petition for restructuring debts submitted by the borrower to court; - execution or judicial proceedings have been initiated against the borrower (i.e. a bankruptcy caution has been filed against the borrower, or a petition in bankruptcy has been filed with a court against the borrower by the borrower themselves or one or several third parties). The borrower must pay a fine of 63.91 upon the demand of the bank every time they are in breach of the above obligations. If the borrower fails to pay interest or does not start repaying the loan or fails to adhere to the deadlines established in the repayment schedule, the bank will submit a claim to the surety providers or pledgors or start selling the property that serves as collateral. Failure of the surety providers or pledgor to perform the obligations arising from the loan agreement gives the bank the right to demand performance of the borrower s or their surety provider s or pledgor s obligations from the state. The state obtains the right of claim against the borrower and their surety providers or pledgor after it performs the borrower s obligation to the bank. Cancellation of the loan agreement The bank has the right to refuse to allow the borrower to draw down the loan and/or cancel the loan agreement and demand immediate repayment of the student loans granted to the borrower and payment of the interest due on the loan if: - it appears that incorrect data or forged documents were submitted to the bank; - the value of the sureties is insufficient and the borrower has failed to submit to the bank additional documents or established additional security in favour of the bank if this is required pursuant to the laws of the Republic of Estonia or the legislation established by the government; - the borrower delays the payment of three consecutive loan repayments in full or in part, and the bank has given them an additional deadline of two weeks for payment of the missing amount. When the borrower is given an additional deadline, the bank also sends them a notice stating that the bank will cancel the loan agreement if the borrower fails to pay the overdue amount within the additional deadline; - the borrower is in breach of any other terms and conditions of the loan agreement. In the above cases, the borrower must make all of the payments within 20 banking days of receipt of the relevant cancellation notice from the bank. The bank will start calculating default interest if the entire amount payable is not available in the current account when due. The expenses relating to judicial and/or execution proceedings may be added if the bank cancels the loan agreement and they must be paid by the borrower. 5. Other important legal aspects Consultation of databases The bank must inform the borrower immediately and without charge of the result of a consultation of a database, if the decision not to grant a loan to the borrower is made on the basis of such a consultation. The information obtained from databases is not forwarded if the forwarding of such information is prohibited by legislation or is in contravention of the purposes of public order or security. Right to a copy of a draft loan agreement Yes Amendment of the loan agreement Any amendments to the loan agreement are made in writing and they enter into force from the moment they are signed by the parties, unless the parties agree otherwise. An annex to the loan agreement is not entered into by the parties every time a student loan is paid out, but the borrower authorises the bank to keep account of the student loans granted to the borrower. The bank has the right to amend the terms and conditions of the loan agreement unilaterally if: - the legislative or regulatory provisions that govern student loans or consumer credit change, or - the contract entered into between the Republic of Estonia and the bank for organisation of the grant of student loans is amended, and - the amendment of the loan agreement is justified to make it comply with the legislative or regulatory provisions, or - with the contract entered into between the Republic of Estonia and the bank for organisation of the grant of student loans. The bank notifies the borrower of any amendments made to the loan agreement in advance. The borrower has the right to

terminate the loan agreement immediately if they do not agree with the new terms and conditions.