Loans in Denmark

How to get a loan in Denmark

A personal loan is often something that people will need during their lifetime to buy a new car, house or other consumer goods. The loan market can be complicated due to its many options and terms that are unfamiliar to the everyday consumer.

We have made this guide to help you understand and navigate the danish loan market, and get an overview of your options. So you can borrow money for what you need when living in Denmark.

Examples of 2 types of loans in Denmark:

Loan provider	LendMe Loan	Bank Norwegian Loan
Loan amount	10.000 kr.	10.000 kr.
Loan duration	7 Years	8 years
Interest rate	8,9%	9,9%
Creation fee	1000 kr.	0 kr.
ARP	12.5%	10.2
Monthly payment	176,06 Kr	150,79 Kr.
Total cost	4.788,14 kr.	4.474,57 kr.
Total payback amount	14.788,14 kr.	14.474,57 kr.

As its seen on these two different loans, the one with the biggest interest is also the one with the lowest total cost and ARP. 

The reason behind this is, that the loan form LendMe, has a fee for establishing the loan. The 1000 kr you have to pay as a start is affecting the total price.

Bank Norwegian is cheapest, when comparing these two loan offers.

How to get a loan in Denmark

Best loan in Denmark

The best loan is often a loan that fits your needs, and would therefore be the cheapest loan with the best terms and conditions. This means that you typically get flexible time to repay the loan, so it fits your economic situation.

If you want to get the best loan that fits your needs, it can be a good idea to compare multiple loan offers from different banks, to make sure that you get the cheapest costs but also the best terms. 

Underneath this paragraph, you will find out list of the best loans thats possible for anyone to apply for in Denmark:

List containing the best loans in Denmark

• Bank Norwegian  | interest rate from 4.99 - 18.99% | Loan from 5.000 kr. - 400.000 kr.

• Resursbank | Interest rate from 11,5-11,55% | Loan from 10.000 kr - 500.000 kr.

• Sambla | Interest rate from 7,19-24,99%| Loan from 10.000 kr - 500.000 kr.

• Digifinans | Interest rate from 3.49 - 19.95% | loans from 10.000 kr. - 500.000 kr.

• Ferratum | Interest rate from 22.51 - 22.51%| Loans from 1.500 kr. - 50.000 kr.

 

What is the price for a loan in Denmark?

Analyzing the Price 

Delving into the intricacies of consumer loans in Denmark, we unveil the cost composition of a specific loan scenario: an Annual Percentage Rate (ÅOP) of 5.11%, an interest rate of 4.9%, a loan term of 5 years, a loan amount of 30,000 DKK, and a negligible establishment fee of 0 DKK.

Annual Percentage Rate (ÅOP)

In the realm of consumer loans, the Annual Percentage Rate (ÅOP) serves as a comprehensive indicator encompassing not only the interest rate but also auxiliary expenses associated with the loan. For this loan, with an ÅOP of 5.11%, borrowers are offered a holistic representation of the cumulative cost incurred throughout the loan's lifespan.

Interest Rate

Central to the price structure of this loan, the interest rate stands at a competitive 4.9%. This rate reflects the compensation required by the lender for extending credit, allowing borrowers to obtain the desired financial support while honoring the lender's risk and return considerations.

Loan Term

The loan term, set at 5 years, signifies the duration over which the loan will be repaid. With this extended timeframe, borrowers have the flexibility to manage their repayments within a reasonable horizon, potentially aligning with their financial capabilities and aspirations.

Loan Amount

At an amount of 30,000 DKK, this loan serves as a substantial financial injection to meet various personal needs, whether it be funding a significant purchase, covering unexpected expenses, or fulfilling other financial aspirations. The loan amount sets the stage for borrowers to realize their objectives within the specified terms and conditions.

Establishment Fee

Remarkably, this loan entails a negligible establishment fee, effectively removing an additional cost burden typically associated with initiating the loan agreement.By waiving the establishment fee, borrowers can direct their financial resources solely towards the loan principal and interest, enhancing affordability and simplifying the overall loan structure.

Understanding the intricate cost dynamics of consumer loans in Denmark demands careful evaluation and comparison. As market conditions and loan offers may evolve, borrowers are encouraged to engage directly with lenders, leveraging these key metrics, to obtain precise and up-to-date information tailored to their specific circumstances.

Borrow money in Denmark

Its easy to get a loan in Denmark if you have the required documents such as MitID, Residence permit, bank account and proof of income.

Other requirements are things like your age and what kind of creditscore you have. You have to be atleast 18 years old, but most loan providers require that you are atleast 21 years of age.

As a consumer you have many options when you are looking to take a loan in Denmark. There are many types of loans in Denmark, with some of them being: Quick loan, fast loan, consumer loan and car loan.

These different loans all vary in price, and for that reason, you should look into and compare your options thoroughly. When you apply for a loan, you will receive a loan contract which contains the costs for the loan.

There are different factors to look at, such as interest, yearly cost for the loan and the maturity of the loan.

If you are looking for a loan in Denmark, there are requirements that you must comply with to get accepted by the loan provider. Here is an overview of these requirements:

Best banks for loans above 50.000 kr.

If you want to loan more than 50.000 kr, there is some banks that are better than the others. These banks are experts in lending out big loan amounts and are a perfect fit if you want to borrow more than 50.000 kr.

When you apply for a loan on more than 50.000 kr. your loans terms such as interest rate and loan time, will be different than if you take a quickloan on 5000 kr.

You will typically get a lower interest rate, as the loan amount is so high compared to smaller loans. The loan time will also be longer, to spread out the payments into smaller and more bearable monthly payments.

Tjeklån makes it easy to get a loan

Each year we help more than 100.000 people apply for a loan, and can also help you finding the right loan deal for you. When using tjeklån, you get a free and seamless service, where you can get the right knowledge before applying at the banks.

In just a few steps, you can watch and compare the different loan providers on the danish loan market, apply with one click and get paid out in aprox. 24 hours, sometimes in some hours.

If you want help from us, please visit our office or contact our support, which you can find by clicking this link.

Step-by-step guide to apply for a loan in Denmark

When applying for a loan in Denmark, there is a few steps you have to go through before getting a loan offer. Here at Tjeklån, we guid you through step by step.

Under this section you will find a step by step guide on how to take a loan in Denmark:

1. Check your creditscore
   
   Before you search for loans, you have to make sure that its a good idea to get a loan, because it can have a deep impact on your economy for years. Dont ever apply for a loan, if you are having troubles financially. How much can you spare to spend monthly in payments?
   
   
2. Consider your options
   
   Is it possible for you to get through your financial issues without applying for a loan? Taking a loan is a big thing and has a big impact on your economy. Consider if friends or familiy can help you out.
3. Choose type of loan
   
   There is many different types of loans in Denmark. You can apply loans for personal use, cars, mortage and collective loans.
   
   If you have many loans you want to collect in one, when you should take a consolidation loan, which makes it easier to get an overview on your debt.
   
   If you need a loan for dentist, usage or a vacation, you should go for a personal usuage loan.
   
   
4. Compare the different loanproviders
   
   When youve chosen the type of loan you want, you should consider which provider meets your needs. When comparing providers, you should look a metrics such as:
   
   
   • Interest rates and Yearly expense in percentage
   • Loan time
   • Startup fees
   • Providers rating
   • Loan amount
5. Choose a lender and apply for the loan
   
   When you have found the provider that fits your needs, you have to apply the loan and wait for approval from the provider - see next step, where we tell what documentation you need to provide. Popular loan providers are Bank Norwegian, Express bank and Lendo.
   
   
6. Provide the loanprovider with the required documentation
   
   When applying for a loan in Denmark, the danish financialinstituions has made a rule about documentation, to protect the person taking a loan. The banks must require documentation from the person, to make sure that their financial situation is stable enough to go accuire debt
   
   
7. Accept the loan, get it paid out and start paying back the loan according to your creditagreement.
   
   When the loan is accepted, its going to be paid out on your account in less than 24 hours, in most cases. When the loan is paid out, you have 14 days to regret, but after that, you have to start paying back as agreed in the loan deal.

Requirement you have to comply with

Requirement you may need to comply with

Find a Denmark loan

Its very easy to find a loan in Denmark, and most people will get approved for a loan. I Denmark there is various types of personal loans and loan providers. Example of banks in Denmark are Bank Norwegian, Express bank and resursbank.

In the Danish loan market you are able to borrow between 1.000 - 1.000.000 kroner. When you borrow money from a loan provider, you can get interest rates from 0 %. From July 2020 a new law prohibited providers to offer loans with an APR that exceeds 35 %.

Most loans on this page are an unsecured loan, which means that you dont have to put anything up as security for the loan, that means less risk for you and more risk for the loanprovider. 

Loan calculator Denmark

To find the loan that fits you and your needs, it can be a good idea to use a loan calculator. To use the loan calculator you have to insert the loan amount, repayment period, establishment costs and the interest rate.

The loan calculator will give you the monthly payment rate, and how much it will cost you to borrow the money. Furthermore the loan calculator can give you an overview, that showcases the loan providers that can provide the loan you want. 

Please note that the calculator is in Danish. If you want the data shown in english, please right click on your screen, then click "translate to english". 

Where can i borrow money in Denmark?

If you want to borrow money in Denmark, you will have to apply for a loan at a danish financial company or institute thats under regulation from the danish financial ministry.

The places where you can borrow money in Denmark, are banks such as Bank Norwegian, Express Bank and KreditNu.

Here we have a list over places you can borrow money in Denmark:

1. Bank Norwegian  | interest rate from 4.99 - 18.99% | Borrow money from DKK 5,000 - 400,000

2. Saverium | interest rate from 2.95 - 24.99% | Borrow money from DKK 3,000 - 500,000

3. Digi finans | interest rate from 3.49 - 19.95% | loans from 10,000 - 500,000

4. Basic bank  | interest rate from 4.95 - 19.95% | Borrow money from DKK 30,000 - 500,000

5. Mybanker  | interest rate from 3.49 - 26.4% | Borrow money from DKK 10,000 - 300,000.

6. Facit Bank  |  interest rate from 6.93 - 19.56% | Borrow money from DKK 10,000 - 200,000.

7. Paymark Finans|  interest rate from 9.9 - 19.56% | Borrow money from DKK 10,000 - 150,000

Such companies or providers, is easy to find. On this page we have listed the best options when looking for a loan in Denmark.

Loans in Denmark for foreigners

As a foreigner in Denmark, you are still able to lend money from the bank or other online loan providers. Many loan providers in Denmark only require that you have an NemID or MitID and reside in the country, and have the legal documents to do so.

When you apply for a loan in the bank or other providers in Denmark, they can in some cases also require that you have a Danish bank account. All these requirements vary from one provider to another, and you can find these requirements by clicking on the provider here. 

Remember to consider your options when applying and taking a loan in Denmark. Our service is for the sole purpose of providing assistance, and you should always check and review the loan offer throughly.

Types of loans

There are many types of loans that you can apply for on the Danish loan market, and therefore you might think, what is the difference between these types of loans?

The main types of loans are Quick loan, Consumer loan, Mini loan, Car loan, SMS loan and Collective loan.

Quick loan

Quick loans have become very popular the last couple of years, as you can apply and get approved quickly. With quick loans you are often able to lend small amounts with a short repayment period.

Consumer loan

A consumer loan is an easy and fast loan type, where you are able to borrow money for whatever you need. When you apply for a consumer loan, the process is often super quick, and you will therefore in most cases have the money in your bank account within a few days.

Mini loan

A mini loan is similar to a quick loan, and makes it possible to lend down to 1.000 dkk. A mini loan makes it possible to borrow money quickly and easily, and can be a good solution if you receive an unexpected bill.

Car loan

If you want to buy a new or used car, you often have to find a financing solution. With a car loan you are often able to lend money, so you can realize your car dreams. There are many options on the Danish car loan market, and they all have different interest rates, terms and overall prices.

You get an overview over the different car loans we have on this page. It is possible to apply for a loan directly on this page, and use it for your new car. 

SMS loan

With an SMS loan you are able to apply for a loan fast and easy via your phone, computer or tablet. You will often be approved within one day, and can therefore have the money ready for use in a couple of days and sometimes hours.

Collective loan

If you have many loans with many different banks and providers, then you can lose your overview, and end up missing payments, which can cost you a lot of money in interests and fees. With a Collective loan you can collect all your loans in one loan, which can save you money and make it easy to keep track of your payments. 

The main pro of taking a collective loan is the debt consolidation, because you collect and gather all loans in one big loan, with only one interest rate to pay.

Fast loan in Denmark

There are many types of fast loans in Denmark, which makes it possible to apply and get approved for a loan very fast and easy. Quick loan, mini loan and SMS loan are all loan types, that makes it possible to have the money on your account within a few days and sometimes hours.

Although you don't have to state the origin of use for the money, the bank will do a credit check on your personal economic situation, to ensure that you will be able to pay back the loan. 

Cheapest loan in Denmark

As a consumer you have many options, and therefore you are able to find cheap loans. To find the cheapest loan in Denmark, it's a good idea to compare loan offers. You should compare the APR of each loan offer, as it contains all costs such as interest rates and establishment costs, and therefore shows the real price of the loan.

When you are looking for the cheapest personal loan, you are able to use a comparison service. This makes it possible to apply with one application, and then receives offers from multiple banks that can provide the loan you want and therefore the cheapest loan.

Here is a list of the cheapest loans available in Denmark 2023:

1. Bank Norwegian cheapest loan  | interest rate from 4.99 - 18.99% | Loans from DKK 5,000 - 400,000

2. Saverium cheapest loan | interest rate from 2.95 - 24.99% | Loans from DKK 3,000 - 500,000

3. Digi finans cheapest loan | interest rate from 3.49 - 19.95% | loans from 10,000 - 500,000

4. Basic bank cheapest loan  | interest rate from 4.95 - 19.95% | Loans from DKK 30,000 - 500,000

5. Mybanker cheapest loan  | interest rate from 3.49 - 26.4% | Loans from DKK 10,000 - 300,000.

6. Facit Bank cheapest loan  |  interest rate from 6.93 - 19.56% | Loans from DKK 10,000 - 200,000.

7. Paymark Finans cheapest loan |  interest rate from 9.9 - 19.56% | Loans from DKK 10,000 - 150,000

8.  Sambla cheapest loan | Interest rate from 7,19-24,99%| Loan from 10.000 kr to 500.000 kr.

9. REsursbank cheapest loan | Interest rate from 11,5-11,55% | Loan from 10.000 kr to 500.000 kr.

Car loan in Denmark

If you want to take a loan in Denmark to buy a new car, you are able to do so from many banks. The price for a car loan will depend on factors such as:

• The price of the car

• How old the car is

• How long you want to repay the loan

• How big of a down payment you can put into the loan

• Your personal economic situation

As a consumer you can lend money for a new or used car, but the price for your loan will depend on the factors mentioned above.  

If you want the cheapest loan, you should go for the car loan with the lowest interest. Often the lowest interest is found on loans for new cars, as they tend to be more expensive than used cars. 

A new car will also last you longer, but its also possible to borrow money for a used car. Just keep in mind that a used car will have a higher interest rate due to the price and that its used.

Denmark

How to review the loan offers

When you receive your loan offers, there will be many new and sometimes unknown terms. We have made an overview, to make it easy to understand and review your offer:

Establishment costs

When you approve your loan offer, you will often pay establishment costs. These costs are something that you pay for all the paperwork that the provider does to lend you the money.

Interest rate

The interest rate is the cost that you pay to the loan provider, and it's important that you check this number. The interest rate is often the most expensive cost, and it's therefore important that you get as low interest rates as possible.

APR

The APR is the Annual Percentage Rate on the loan, and it's therefore useful to understand this number, as it represents the real price of the loan. You can use the APR to compare loan offers and get the cheapest loan.

Loan amount

When you borrow money, it's important to remember that it's not for free. The money that you borrow has to be paid back, and you will pay costs for it, and for that reason you should be sure that you need the money, and that your economic situation is durable enough to pay back the loan. 

Get approved for a loan as a foreigner

If you want to get approved for loans in Denmark, you often only have to comply with a few requirements. The requirements are set by the individual banks, but there will typically be some that they all share such as: You have to be at least 18 years old to take a loan.

As a foreigner in Denmark, your chances to get a loan will increase, if you have a bank account in a Danish bank. It will moreover increase your chances if you have a stable income, job and an address in Denmark. 

Can i get a loan even though i'm not a danish citizen?

The short answer is yes, but you will often have to comply with a couple of requirements such as having a Danish bank account, stable income and a Danish address. Depending on where you are borrowing your money, you often need to check these requirements off.

When you apply for a loan in Denmark, you will need a MitID/NemID. This is used as an online verification, and can be compared to a physical key. As a foreigner you are able to obtain a MitID/NemID here.

As a foreigner in Denmark, you will in some cases also need to provide a residence permit. You are able to apply for a Danish residence permit here. 

When you receive your MitID/NemID, you can apply for a loan, and get the same benefits as any other application. This means that you can take a personal loan, and often borrow the money with the same terms and conditions as any other applicant. 

Loan companies Denmark

There are many loan companies in Denmark, where you are able to borrow money for your needs. Many loan companies have made det application process fast and easy, and you can therefore have the money in your bank account within a few days.

Here you have an overview of some of the loan providers on the market:

1. Bank Norwegian  | interest rate from 4.99 - 18.99% | Loans from DKK 5,000 - 400,000

2. Saverium | interest rate from 2.95 - 24.99% | Loans from DKK 3,000 - 500,000

3. Digi finans | interest rate from 3.49 - 19.95% | loans from 10,000 - 500,000

4. Basic bank  | interest rate from 4.95 - 19.95% | Loans from DKK 30,000 - 500,000

5. Mybanker  | interest rate from 3.49 - 26.4% | Loans from DKK 10,000 - 300,000.

6. Facit Bank  |  interest rate from 6.93 - 19.56% | Loans from DKK 10,000 - 200,000.

7. Paymark Finans|  interest rate from 9.9 - 19.56% | Loans from DKK 10,000 - 150,000

8. DER Privatfinans |  interest rate from 9.9 - 19.56% | Loans from DKK 10,000 - 100,000

9. Sparxpres  | interest rate from 12.55% | Loans from DKK 10,000 - 150,000

10. Ferratum | interest rate from 22.51 - 22.51%| Loans from DKK 1,500 - 50,000

11. LendMe  |  interest rate from 3.6 - 20.95% | Loans from DKK 10,000 - 500,000.

12. Letfinans  |  interest rate from 3.49 - 18.2% | Loans from DKK 10,000 - DKK 500,000.

13. GoLoan  |  interest rate from 3.55% - 14.92% | Loans from DKK 20,000 - 500,000.