Estonia's shared loan database to launch in three years, accessible only when applying for credit

The Ministry of Finance confirms that Estonia's planned shared loan database, which will consolidate nearly one million loans, leases and bonds, will be accessible to banks only when a person submits a specific loan application. The database is expected to be ready within three years and cannot be browsed without justified cause.

Over the next three years, Estonia will establish a unified database that will consolidate all loans, leases and debts of the country's residents, totalling approximately one million records. The Ministry of Finance explained that banks and other lenders will be able to use this registry only when processing a specific loan application.

The Ministry stressed that the database cannot be simply browsed or used to check someone's financial background without a clear and justified need. This means that access is directly tied to a loan application, and the aim is to protect people's privacy while also providing lenders with a clearer picture of an applicant's creditworthiness.

The creation of the new registry primarily serves the principle of responsible lending. Currently, loan information is scattered across different institutions and companies, so one lender may not know what obligations a person has already undertaken to other creditors. A shared database would enable a more comprehensive picture.

Consolidating data in one place inevitably raises questions about data protection for individuals. The Ministry of Finance is of the view that a strict access restriction-where data can only be queried in connection with a loan application-is sufficient safeguard against misuse. Additional requirements are also expected to be established for exactly who can make queries and for what purpose.