Terms & Conditions 
Below are the terms and conditions of Brúa Loan Company regarding the granting of student loans. Please read them carefully before applying for a loan with us. By applying for a loan, you agree to these terms and conditions.
General
The general terms and conditions of Brúa Loan apply to transactions between the company and its customers. They contain standard provisions on the rights and obligations of the parties. These terms and conditions apply to all customers of Brúar Loan Company, and are considered part of the terms of every loan granted by the company to finance education.
Brúa (hereinafter also referred to as a "lender") offers individuals student loans. These general terms and conditions describe the contractual relationship regarding Brúar's lending to borrowers. These terms and conditions are considered as part of a loan agreement between the parties. The terms and conditions cover the conclusion of contracts, the termination and cancellation of contracts, communication channels, arrangements for business settlement, disclosure of information and other matters. In the event of a difference between the provisions of these terms and conditions and the provisions of a loan agreement, the provisions of the loan agreement shall take precedence over these terms.
At the beginning of the business relationship between the lender and the borrower, and before the lender processes the loan to the borrower, the borrower must fill out an application electronically on the website of Lánafélagið Brúa, www.brua.is.
Before submitting an electronic application to the Company's website, prospective borrowers must carefully familiarize themselves with these terms and conditions. It is not possible to send an electronic application unless the borrower has previously confirmed that he/she has familiarised themselves with the content of these terms and agrees to their contents.
By submitting an electronic application on the lender's website, the borrower undertakes to comply with the terms and conditions that apply to the lender's lending at any given time.
Information and terms of the agreement will be sent to the borrower in Icelandic and communication with the borrower will be in Icelandic.
Lending - power of attorney to request financial information
The lender's lending is governed by Act No. 33/2013 on Consumer Loans.
Before entering into a loan agreement, the lender will assess the borrower's creditworthiness. In addition to the credit assessment, the lender will carry out a credit assessment if the amount of the loan agreement is ISK 2,000,000 or more. When a married couple or cohabiting couple are joint borrowers, a credit assessment shall be carried out if the loan amount is ISK 4,000,000 or more. A credit and payment assessment will be carried out in accordance with, cf. Article 10 of Act No. 33/2013 on Consumer Loans as well as the loan rules of Brúa Loan Company.
With a credit rating, the lender seeks to verify the borrower's ability to fulfil the loan agreement and, as appropriate, to check the status of collateral if any. A credit rating shall be based on information from a database on financial affairs and creditworthiness. A credit rating does not include a credit assessment. The lender may, with the consent of the borrower, base its assessment on information from a third-party database.
A credit assessment involves calculating the borrower's ability to pay based on assets, liabilities, expenses and income, which is based, among other things, on official consumption criteria, all in accordance with Regulation No. 920/2013 on credit and payment assessments
By agreeing to these terms and conditions, the borrower declares that he/she agrees that the lender is authorised to obtain the above information in accordance with Item 1. Article 9 of Act No. 90/2018 on Data Protection and the Processing of Personal Data, cf. Item 8. Article 3 of the same Act. By signing these terms and conditions, the borrower authorises the lender to request the collection of data on the borrower's financial position, including obtaining information on the status of all deposits and obligations to any type of financial institution, including whether there are any defaults of any kind. The power of attorney also covers gathering data on the borrower's debt position vis-à-vis public entities, debts to Treasury collectors and municipalities. The power of attorney also covers collecting data on registered assets in the databases of Registers Iceland and the Icelandic Transport Authority and any other information on the asset status. The power of attorney authorizes the lender to entrust CreditInfo Lánstrausti hf., ID no. 710197-2109, with retrieving all the same information and using it for the processing of payment and/or credit assessments for the lender. The borrower agrees that the lender will use the information obtained pursuant to the above power of attorney to assess whether a loan will be granted.
The borrower must demonstrate that the postgraduate studies they are attending meet the main requirements of Brúar. You can see a list of the types of postgraduate studies that the association lends to (see 'creditable study programmes' on the association's website).
The borrower must demonstrate that the postgraduate studies they are attending meet the main requirements of Brúar. You can see a list of the types of postgraduate studies that the association lends to (see 'creditable study programmes' on the association's website).
A lender only grants a loan if it considers it likely that the borrower will be able to repay the loan, taking into account the creditworthiness and payment assessment. If the results of the credit rating, and as the case may be, the credit rating, are not positive, a loan will not be granted. Brúa is, however, authorised, on the basis of further information from the applicant, or other available documents, to agree to grant a loan despite a negative result of the credit assessment, provided that the information shows that it is likely that the applicant will be able to repay, e.g. due to his asset status and/or on the basis of a realistic assessment of the applicant's likely future income after graduation. The results of the credit assessment shall be explained to the applicant and the applicant shall be made aware if a loan is granted on the basis of additional information, even if the result of the credit assessment is not positive.
Prior to entering into a loan agreement, Brúa provides the borrower with information pursuant to Article 7(2) of the Act on Consumer Loans No. 33/2013 in the form provided for in Regulation No. 921/2013 on the standard form used by the lender to provide the consumer with information prior to entering into a loan agreement. At the same time, prior to entering into a loan agreement, the lender provides the borrower with information pursuant to Article 25 of the Act on Consumer Loans No. 33/2013 on historical developments in prices, interest rates, etc., which is based on data published by the Consumer Agency on its website.
Costs and Interest
The annual proportion of the total cost of borrowing, as defined in Article 5(a) of Act No. 33/2013 on Consumer Loans, of the total amount paid by the consumer may not exceed 35% plus the policy rate.
The total borrowing cost includes all costs, including interest, indexation, fees, taxes and other fees that the borrower must pay in connection with the loan agreement and of which the lender is aware at the time of entering into the agreement, with the exception of registration costs* if applicable. In addition to costs according to the price list, the lender can claim the borrower for costs incurred by the lender due to the borrower's non-payment, including the cost of a collection warning. In the event of default, the lender reserves the right to demand the highest statutory penalty interest on its claim at any given time, in addition to collection costs. (see Regulation on maximum collection costs).
In the event of default on the loan agreement, the lender is authorised to notify Creditinfo hf. of the default, if the default has lasted for 90 days or more.
Loan terms, such as interest rates and costs, are specified in the loan agreement and a standard information form.
If the borrower defaults on its obligations, the borrower must pay default interest in accordance with the Central Bank of Iceland's decision at any given time on the basis of default interest and the default premium, cf. Article 6(1) of Act No. 38/2001 on Interest and Indexation on Overdue or Overdue Amounts from the due date to the date of payment. Unpaid default interest is calculated daily from the first day of default and is added to the principal of the loan every 12 months, for the first time 12 months after the first day of default.
Disbursement
The loan amount of student loans is paid into the borrower's bank account in his/her bank or in accordance with the disbursement arrangement that has been agreed upon (for example; directly into the University account for tuition fees).
When disbursement is completed in whole or in part, the lender may request the borrower to issue a bond in recognition of a debt owed to the lender. If the borrower does not comply with the lender's request for the issuance of a bond, the lender is authorised to discharge the debt in accordance with further instructions in the loan agreement.
Repayment of loan before maturity/final due date
The borrower has the right to repay the loan at any time before the agreed due date/final date, cf. Article 18 of Act No. 33/2013 on Consumer Loans. If the Borrower chooses to pay before the agreed maturity date/final date, the Borrower shall be entitled to a reduction in the total borrowing cost by the amount of interest and other charges that were due after the payment date. In the case of payment before the agreed due date/final due date, the lender reserves the right, in accordance with Article 18 of the Act, to claim reasonable compensation, a prepayment fee, which is based on a proportional basis for costs incurred by the lender and is directly related to payment before the due date/final due date, provided that the payment before the due date/final due date is made during a period where the lending interest rate is fixed. Possible prepayment costs are defined in the loan agreement.
Handling of personal data
The lender is authorised to collect and process personal data in accordance with Act No. 90/2018 on Data Protection and the Processing of Personal Data. The information in question is information that the lender uses to assess the borrower's creditworthiness and/or ability to pay according to Article 10 of Act No. 33/2013 on Consumer Loans. The lender is authorised for the purpose of obtaining information from independent parties in the field of credit ratings or from databases on defaults, including those of CreditInfo.
The privacy policy of Brúa Loan Company can be accessed here, www.brua.is/personuvernd/
Automated decision-making in general loans
The applicant agrees that Brúa bases its decision on granting a general loan on automated processes. The decision is based on the applicant's credit assessment and, as applicable, a credit assessment. The information on which the assessment is based is obtained from data that is granted permission to retrieve from the 'authorisation to collect data' above.
If the applicant does not wish to accept the automatic decision of Brúa Loan Company regarding the granting of a student loan, a request for a review of the decision shall be sent to brua@brua.is email address within 14 days of the decision being made.
Use of cookies
A cookie is a text file that can be placed on computers or other smart devices when www.brua.is website is visited. It makes it possible to monitor how users use the website and thus Brúa strives to improve its services and accessibility.
By agreeing to the terms and conditions of Brúa Loan, you agree to the use of Google Analytics and Facebook Pixel cookies, which collect information anonymously and provide reports on website development without disclosing individual users or personal information. Google Analytics and Facebook Pixel use their own cookies to track visitors' interaction with websites. Brúa reserves the right to display ads to users through Google and Facebook's remarketing systems. Those who do not want to see such ads can disable the use of cookies.
Users can at any time set their web browser to stop the use of cookies. Either so that the cookies are not stored or that the browser asks for the user's permission first.
Cookies are stored on the user's computers for a maximum of 24 months from the time the user visited the website of Lánafélagið Brúa.
All personal data that may be created through the use of cookies will be handled and processed in accordance with the provisions of Act No. 90/2018 on Data Protection and the Processing of Personal Data. Brúa declares that such information will not be processed for any other purpose than stated above and the information will not be stored longer than necessary in relation to the purpose of processing. Personal data will not be disclosed to third parties unless otherwise stipulated by law.
Further information on Lánafélagið Brúa's use of cookies can be found in Lánafélagið Brúa's cookie terms here, www.brua.is/vefkokur
Miscellaneous provisions
These terms and conditions of the agreement and the agreements made on the basis of them between the lender and the borrower are an exhaustive description of the contractual relationship, their rights and obligations and take precedence over previous obligations and communications, whether oral, written or otherwise
The Borrower may not assign his/her rights or obligations under these Terms and Conditions or agreements entered into on the basis thereof without the written consent of the Lender. On the other hand, the lender is permitted to assign its rights and obligations under this agreement in whole or in part to a third party.
These terms and conditions are subject to unexpected and force majeure events beyond the parties' control and which may affect the performance of these terms and conditions and agreements made on the basis of them.
If a public authority, e.g. a tax authority, decides to levy taxes, levies or levies on transactions covered by these terms of the agreement, the borrower undertakes to pay this directly to the relevant authorities to the lender's indemnity, or to hold the lender harmless from such taxes, levies or levies.
The Lender shall not be liable for any damages, direct or indirect, which may be caused by technical failures or errors in the software, operating systems, networks, telecommunications systems (including telephones, fax machines and similar equipment), interruptions or disturbances in such systems, power failures, malfunctions and disturbances in equipment and machinery, whether such equipment is owned by the Lender or used by the Lender or by others. In the event of an incident or circumstance in the manner described above that prevents the lender from fulfilling its contractual obligations with the borrower, in whole or in part, the lender's obligation shall be postponed until the above situation relieves and can be carried out. If the above situation results in it not being possible to make payments or receive payments in accordance with contractual obligations, neither the borrower nor the lender shall have to pay interest because such payments are postponed.
Right to withdraw from contract
According to Article 16 of the Act on Consumer Loans, the borrower has the right to withdraw from the agreement without payment of penalties and without specifying any reason, provided that the borrower sends the lender a notice to that effect within 14 days from the date the borrower receives these terms or the loan agreement is concluded. The deadline for canceling a contract begins to run when the borrower has received the loan promise.
Notice of cancellation of the agreement shall be sent to the lender at the following address in a verifiable manner: Brúa, Suðurlandsbraut 30, 108 Reykjavík.
Disputes and Jurisdiction
The agreement between the parties is governed by Icelandic law. Disputes regarding the agreement between the parties may be brought before the District Court of Reykjavík.
Entry into force
The agreement enters into force as soon as the borrower is sent confirmation that the loan has been granted without further notice.
Other
A default by the Borrower on this Agreement shall be considered if: (i) the Borrower fails to pay on the correct due date or in the correct currency and such default lasts for more than 14 days from the due date, (ii) the Borrower is foreclosed, a forced auction of the Borrower's property is requested, the Borrower seeks composition with its debt collectors or forgiveness of debts, or a demand is made for the Borrower's estate to be taken into liquidation, or if (iii) information provided by the Borrower to the Lender in connection with the Loan Agreement is found to be false or misrepresented.
In the event of default, as defined in this Article, the lender may, without notice and without warning, discharge all outstanding amounts of the loan, together with other payments that the borrower is obligated to pay under this agreement. The borrower must then pay default interest on the amount due or due.
Cases of default and authorisations to cancel loans before the agreed maturity date are further elaborated in the loan agreement.
The signing of this agreement by the lender does not constitute a loan promise, which will only be granted if the borrower fulfils the lender's conditions.
By signing electronically, the borrower guarantees that all information they have provided to the lender in connection with the loan agreement is correct. The borrower is aware that the borrower is liable for any damage that may occur due to incorrect information.
These terms and conditions enter into force on October 1, 2023