Financing education remains a key issue for Cypriot families. Despite an increase in scholarships and grants, many students and their parents still rely on student loans to cover tuition, housing, and other expenses. Demand for student loans remains high in 2025, especially during the admissions period when young people are deciding on their future.
Cypriot banks offer a variety of loan products that cover tuition at universities and colleges, both on and off the island, as well as housing, food, books, and other necessities. Let's examine the terms offered by the four largest banks in Cyprus: Bank of Cyprus, Ελληνική Τράπεζα (Hellenic Bank), Alpha Bank, and Ancoria Bank.
Bank of Cyprus offers flexibility and support at all stages of education.
According to Teodosis Teodosiou, the bank's Director of Retail Banking, the Bank of Cyprus offers students and their families a wide range of solutions, from basic financing to a package designed for young people aged 18–25.
The bank offers two main products: Starter and Advance loans.
- The Starter loan is designed for students pursuing their first degree. This loan covers tuition, accommodation, and equipment. The interest rate is calculated based on the Bank of Cyprus's base rate (1.64%) plus a margin depending on the amount of collateral provided. For example, the final rate is 5.74% with collateral and 9.04% without. The limit is €20,000 without collateral and €100,000 with collateral. The repayment term is up to 20 years, with a grace period of up to four years. For example, a €50,000 loan secured by property would have a term of 15 years. The monthly payment is €414.95, and the total payments amount to €75,640.27.
- The advance is aimed at master's and professional programs. The maximum amount is €20,000 without collateral and €50,000 with collateral. The term is up to 15 years, and the interest rate is similar to the Starter rate. There is a grace period of up to four years if the graduate's income does not exceed €1,200. For example, a €25,000 loan secured by property would have a term of 15 years. The monthly payment would be €207.47, and the total payments would amount to €37,950.82.
Another option is the "Package for Young People 18-25," which includes a free Visa or Mastercard, an account with up to €1,200, and free online banking.
Hellenic Bank offers loans to students and parents
Hellenic Bank, part of the Eurobank Group, developed the "Morphosis" loan to cover all student expenses, including tuition, housing, meals, and professional certification costs.
The loan is available to students and their parents. You can borrow up to €30,000 without collateral and up to €250,000 with collateral. The term is up to 15 years, and borrowers must not exceed 65 years of age at the time of repayment. There is a grace period of up to five years. The interest rate is based on the bank's base rate (1.42% in May 2025) plus a margin.
For example, a €50,000 secured loan over 12 years would have an annual percentage rate (APR) of 4.92%, a monthly payment of €459, and a total amount financed of €67,454. An unsecured loan of €10,000 for 10 years at 7.92% per annum would have monthly payments of €120 and a total amount of €14,576.
Hellenic Bank is actively developing digital services, including a mobile app, online SEPA transfers of up to €3,000 without commission, virtual cards, and the "Μπλε" cashback program.
Alpha Bank: "Alpha Σπουδαστικό Δάνειο" and "Αφετηρία" account
Alpha Bank offers student loans of up to €75,000 and a special "Alpha Αφετηρία" account with preferential terms for individuals starting their studies and careers. The loan is provided for up to 15 years if secured by property or up to 10 years if unsecured. The rate is variable and depends on Euribor. As of July 2025, the base rate was 6.50%.
If you take out a €30,000 unsecured loan for ten years, you will need to pay €340.07 per month, for a total of €40,963.08. The bank also offers discounts on currency purchases, special insurance programs for students, and free online banking services.
Ancoria Bank offers transparent terms and conditions, as well as an online calculator.
Ancoria Bank focuses on digital solutions. You can borrow up to €100,000 from this financial institution with a term ranging from 5 to 15 years. A grace period of up to five years is provided. The bank offers two rate options:
- CBK + 2% (in July 2025, this equals 5.09%)
- and Euribor + 2.75% (in July 2025, this would be 4.801%).
For example, if you take out a €50,000 loan for 15 years at 5.09% interest, you will need to pay €398 per month for a total repayment amount of €71,616. At a rate of 4.801% (equivalent to 4.801% interest), the monthly payment increases to €390, and the total repayment amount decreases. Ancoria Bank also offers free cash withdrawals and a digital calculator that allows you to estimate your monthly payments in advance.
Conclusion: where is it more profitable to take out a student loan in Cyprus in 2025?
Cyprus banks continue to compete for students and their families by offering more flexible and digital solutions. The Bank of Cyprus focuses on youth packages, Hellenic Bank on large amounts with long terms, Alpha Bank on flexibility and insurance bonuses, and Ancoria Bank stands out for its transparency and online calculator.
For families planning to finance their children's education abroad, it is important to consider currency risks and choose products with favorable conversion options. Against the backdrop of Euribor stabilization and lower inflation in Cyprus in 2025, banks are offering long-term loans with flexible payment structures to ease the financial burden on students during their initial years of study.