Loan in Denmark – Guide to Online Loans in Denmark 2024

Kristian Ole Rørbye

Updated:

Kristian Ole Rørbye

Kristian Ole Rørbye

Kristian is from Denmark but now lives in Thailand. As a foreigner in another country, he knows the need to get a good start, especially in finance, such as taking out loans, buying a car, and finding the best internet at a reasonable price.

Recommended

Loan in Denmark with the best interest rate

Amount

1.000 - 500.000 kr.

Payment period

12-144 months

Interest

2,95 - 22,52%.

4,8 Reviews 2.485 • Excellent

Free & non-binding

Response time: Immediately

*Ex: Total credit amount DKK 200,000. Term 5 years. APR 7.68%. Variable debtor rate 7.00%. Establishment DKK 400. Total repayment: DKK 48,000. Term 1-12 years. Interest rate ranges from 2.95-22.52%.

Amount

4.000 - 25.000 kr.

Payment period

24 months

Interest

24,87%.

4,7 Reviews 1.200 • Excellent

Free & non-binding

Response time: Immediately

*Ex: DKK 8,000 over 24 months Annual debt interest: 0%. APR: 24.87%. Mdl. benefit: DKK 416.67 Total repayment: DKK 10,000 Total credit amount: DKK 2,000 Calculation includes set-up fee of 25%.

Nordcredit logo

Amount

1.000 - 20.000 kr.

Payment period

12 months

Interest

24,97%.

4,4 Reviews 136 • Excellent

Free & non-binding

Response time: Immediately

*Ex: Total credit amount DKK 200,000. Term 5 years. APR 7.68%. Variable debtor rate 7.00%. Establishment DKK 400. Total repayment: DKK 48,000. Term 1-12 years. Interest rate ranges from 2.95-22.52%.

føniks logo

Amount

10.000 - 100.000 kr.

Payment period

36-120 months

Interest

15,87 - 24,87%.

2,3 Reviews 6 • Below Average

Free & non-binding

Response time: Immediately

*Ex: DKK 24,000 over 82 months. Variable debtor interest: 16.90%-19.56%. APR: 20.18%-22.94%. Mdl. benefit: DKK 518-551 Total repayment: DKK 42,442-45,220 Total credit amount: DKK 18,442-21,220.

Amount

10.000 - 100.000 kr.

Payment period

36-120 months

Interest

15,87 - 24,87%.

3,4 Reviews 5.645 • Average

Can be redeemed without fees

Response time: Immediately

*Ex: DKK 10,000 over 84 months. Variable debtor interest: 19.56%. APR: 22.92%. Mdl. benefit: DKK 227 Total repayment: DKK 19,067 Total credit limit: DKK 9,067.

Amount

1.500 - 50.000 kr.

Payment period

5-60 months

Interest

22,51 - 24,99%.

4,3 Reviews 3.782 • Excellent

2M+ Customers

Response time: Immediately

*Ex: Loan amount DKK 25,000, APR 24.99%. Mine. payment DKK 2,337.39 Total credit amount DKK 3,048.66 Total repayment amount DKK 28,048.66 Fixed debtor interest 22.51%.

Paymark logo

Amount

10.000 - 100.000 kr.

Payment period

36-120 months

Interest

15,87 - 24,87%.

2,5 Reviews 7 • Below average

Free & non-binding

Response time: Immediately

*Ex: DKK 40,000 over 84 months. Variable debtor interest: 19.56%. APR: 22.92%. Mdl. benefit: DKK 908 Total repayment: DKK 76,270 Total credit limit: DKK 36,270.

Amount

10.000 - 100.000 kr.

Payment period

12-144 months

Interest

15,87 - 24,87%.

2,9 Reviews 1.354 • Average

Free & non-binding

Response time: Immediately

*Ex: DKK 25,000 over 84 months. Variable debtor interest: 19.56%. APR: 22.92%. Mdl. benefit: DKK 567 Total repayment: DKK 47,668 Total credit amount: DKK 22,668.

Amount

10.000 - 100.000 kr.

Payment period

36-120 months

Interest

15,87 - 24,87%.

1,7 Reviews 19 • Bad

Free & non-binding

Response time: Immediately

*Ex: DKK 10,000 over 95 months Variable debtor interest: 16.90%. APR: 19.80%. Mdl. benefit: DKK 199 Total repayment: DKK 18,942.

Amount

3.000 - 20.000 kr.

Payment period

6 months

Interest

24,90%.

3,5 Reviews 743 • Average

Free & non-binding

Response time: Immediately

*Ex: For a loan of DKK 3,000 with a term of 6 months, the nominal interest rate is 21.96%. The total cost as a percentage is 24.31%. The total repayment amount: DKK 3195.06. Monthly payment: DKK 533 per month for 6 months..

Guide to get a loan in Denmark with the best interest rate:

  • First, click the “Compare Loans” button.
  • Choose the amount (Lånebeløb).
  • Set your preferred payment period.
  • Choose the main purpose of the loan.
  • Click Continue (Fortsæt).

Now, we will find the best rates through individualized comparison.

Remember, applying for a loan through this service is free, noncommittal, and non-binding.

If you're a foreigner or expat in Denmark looking for a loan, the process can seem complex, given the various options from banks and brokers. Which loan fits your situation? Are you getting good terms?

We are here to help. We'll walk you through the loan options in Denmark, key terms, costs, and what to look for in a bank or broker. By the end, you'll have a clearer picture of how to approach loans in Denmark.

Kristian Ole Rørbye,  Financial Advisor at DenmarkExpat.com - Loan In Denmark
Kristian Ole Rørbye, Financial Advisor at DenmarkExpat.com

Online loans, offered by private companies, often come with high-interest rates. We recommend using a service to compare loans from multiple companies to find better terms.

Kristian Ole Rørbye

Key Terms You Must Know

  • ÅOP = Annual Costs in Percentage (similar to APR)
  • Låneaftale = Loan Agreement
  • Kreditvurdering = Credit Assessment
  • Fast rente = Fixed Interest Rate
  • Variabel rente = Variable Interest Rate
  • Indfrielse = Early Repayment
  • Rente = Interest Rate
  • Månedlig ydelse = Monthly Payment
  • Etableringsgebyr = Establishment Fee
  • Andre gebyrer = Other Fees
  • Kreditomkostninger = Credit Costs
  • Samlet tilbagebetaling = Total Repayment

Best Loan Companies in Denmark to Borrow Money From

Ferrantum

Ferrantum is renowned for its flexible lending solutions tailored to individual needs. They provide loans suitable for small to medium-sized needs.

  • Loan Amount: 1.500 - 50.000 kr
  • ÅOP: 22,51 - 24,99%
  • Minimum Age: 21 years
  • Repayment Period: 5 - 60 months

KreditNU

KreditNU has a simple and transparent lending process, making it a preferred choice for those seeking smaller loans without a prolonged repayment schedule.

  • Loan Amount: 4.000 - 25.000 kr
  • ÅOP: 24,87%
  • Minimum Age: 23 years
  • Repayment Period: 24 months

PayMark Finans

Known for their comprehensive loan products, PayMark Finans caters to a wide range of borrowing needs, from personal expenses to larger ventures.

  • Loan Amount: 10.000 - 100.000 kr
  • ÅOP: 15,87 - 24,87%
  • Minimum Age: 20 years
  • Repayment Period: 36 - 120 months

Leasy Minilån

Leasy Minilån offers a blend of competitive interest rates and flexible repayment terms, suitable for various financial needs.

  • Loan Amount: 10.000 - 100.000 kr
  • ÅOP: 15,87 - 24,87%
  • Minimum Age: 20 years
  • Repayment Period: 36 - 120 months

D|E|R Privat Finans

D|E|R Privat Finans is a reliable institution offering loans with clear terms, making it easier for borrowers to manage their finances.

  • Loan Amount: 10.000 - 100.000 kr
  • ÅOP: 15,87 - 24,87%
  • Minimum Age: 20 years
  • Repayment Period: 36 - 120 months

Føniks Privatlån

Føniks Privatlån prides itself on a straightforward application process and clear communication, ensuring borrowers are always in the loop.

  • Loan Amount: 10.000 - 100.000 kr
  • ÅOP: 15,87 - 24,87%
  • Minimum Age: 21 years
  • Repayment Period: 36 - 120 months

Cashper

Ideal for those seeking quick and short-term loans, Cashper's streamlined process ensures swift approvals and disbursements.

  • Loan Amount: 3.000 - 20.000 kr
  • ÅOP: 24,90%
  • Minimum Age: 18 years
  • Repayment Period: 6 months

NordCredit

NordCredit is popular among borrowers for its transparent terms and a range of loan products tailored to different financial scenarios.

  • Loan Amount: 1.000 - 20.000 kr
  • ÅOP: 24,97%
  • Minimum Age: 20 years
  • Repayment Period: 12 months

Nordic Lån

With a strong reputation for trustworthiness, Nordic Lån offers versatile loan products suitable for diverse borrowing needs.

  • Loan Amount: 10.000 - 100.000 kr
  • ÅOP: 15,87 - 24,87%
  • Minimum Age: 20 years
  • Repayment Period: 36 - 120 months

What loan amounts are available for borrowing in Denmark?

In Denmark, through our platform, loan amounts available for borrowing range from DKK 4,000 to DKK 500,000. This wide spectrum caters to both minor immediate needs as well as substantial financial ventures or purchases.

Whether you're looking to finance a short-term project, consolidate debts, or make a significant purchase, our site offers flexibility in loan amounts to suit diverse requirements.

Costs of Obtaining a Loan

When considering unsecured loans in Denmark, knowing the various costs is essential.

Typically, the Annual Costs in Percentage (ÅOP) can range from as low as 3.34% up to 24.99%. This range provides flexibility, but it's crucial to understand that your actual rate will depend on your creditworthiness and other factors.

Notably, a significant regulatory change was introduced in July 2020 with the "Opgør med kviklån m.v." law. This law set a maximum ÅOP at 25% to curtail the prevalence of high-interest loans and protect consumers.

Example of an 8.000 kr. loan:

DetailAmount/Rate
Loan Amount8,000 kr.
Loan Period24 months
Monthly Installments416,67 kr.
Interest Rate0%
ÅOP (APR)24.87%
Establishment Fee25% (2,000 kr.)
Other Fees-
Total Costs2,000 kr.
Total Amount to Repay10,000 kr.
In this example, a borrower takes out a loan of 8,000 kr. over a period of 24 months. Despite the interest rate being 0%, there's a significant establishment fee of 25%, resulting in total credit costs of 2,000 kr. Over the loan's lifespan, this means the borrower will make monthly payments of 416,67 kr. and will repay a total of 10,000 kr. by the end.

Example of a 100.000 kr. loan:

DetailAmount/Rate
Loan Amount100,000 kr.
Loan Period5 years (60 months)
Interest Rate (Variable)3.48%
ÅOP (APR)3.80%
Establishment Fee1,000 kr.
Total Amount to Repay111,690 kr.
Interest Rate Range1.25-20.95%
In this scenario, an individual borrows 100,000 kr. over a span of 5 years with a variable interest rate of 3.48%. The ÅOP, which includes all costs of borrowing, stands at 3.80%. An establishment fee of 1,000 kr. is charged upfront. Over the 5-year term, the borrower will repay a total of 111,690 kr. This example also highlights an interest rate range of 1.25-20.95%, indicating that the interest rate may vary within this span based on various factors, but for this particular loan, the interest rate is set at 3.48%.

Requirements and Terms for Getting a Loan in Denmark

Loans are structured to cater to varied needs, from buying a house to handling emergency expenses. Yet, irrespective of the type, certain requirements and terms often remain consistent, while others vary depending on the loan's nature.

Requirements:

  • Danish CPR Number and MitID Account: To be eligible for a loan, having a Danish CPR number and an active "MitID" account is essential.
  • Age and Residency: Borrowers must be at least 18 years old, live in Denmark
  • 18 years or older: Borrowers usually need to be of legal age, typically 18 years or older, but some lenders may set a higher age minimum.
  • Living in Denmark: Permanent residency or a long-term stay permit in Denmark may be required.
  • Not registered in RKI: Being registered in RKI (Ribers Kredit Information) — Denmark's largest bad payer register — can be a significant barrier to securing a loan. Most lenders prefer borrowers who are not listed in this register.

Terms:

  • Interest Rate: Depending on the type of loan, interest rates can vary widely. Secured loans like mortgages often have lower rates than unsecured loans.
  • Loan Duration: The repayment period can range from short-term (a few months) to long-term (up to 30 years or more for mortgages).
  • Repayment Structure: While monthly repayments are common, some loans might offer more flexible repayment structures.
  • Fees: Beyond the principal and interest, borrowers should be aware of potential fees, such as origination, administration, or late payment charges.
  • Early Repayment: Depending on the lender, some loans might allow for early repayments without penalties, while others may levy a charge.
  • Consequences of Default: Defaulting on any loan can lead to serious repercussions, from credit score impacts to potential legal actions.

The Different Types of Loans in Denmark

Denmark has a diversified lending landscape catering to various needs. Here's an overview of the primary loan types available in the Danish market.

Consumer Loans (Forbrugslån)

Consumer Loan (forbrugslån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Mortgage Loans (Boliglån)

Mortgage Loans (Boliglån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Car loans (Billån)

Car loan (Billån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Quick loans (Kviklån)

Quick Loans (Kviklån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Student Loans (Studielån)

Student loans (studenterlån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Business Loans (Erhvervslån)

Business Loans (erhvervslån)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Overdraft Facilities (Kassekredit)

Overdraft Facilities (kassekredit)

These are unsecured personal loans that don't require any collateral. They are flexible and can be used for various purposes, including travel, home improvements, or purchasing consumer goods.

Pros and Cons of Unsecured Loans

Unsecured loans, as the name suggests, are financial borrowings that don't require any collateral from the borrower.

These loans can be especially appealing for various reasons, such as not having an asset to offer as collateral or seeking a simpler borrowing process.

However, as with any financial instrument, they come with their own set of advantages and disadvantages.

Pros:

  • No Collateral Required
  • Faster Approval
  • Flexible Use
  • Easy to compare multiple offers

Cons:

  • Higher Interest Rates
  • Stricter Credit Requirements
  • Smaller Loan Amounts
  • Potential for Additional Fees

Can a Foreigner Get a Loan in Denmark?

Yes, foreigners can indeed obtain a loan in Denmark. However, some certain criteria and conditions need to be met.

Generally, lenders require foreign nationals to have a stable income source in Denmark, a Danish CPR number, and a "MitID" account.

It's also essential for the individual to reside in Denmark and be at least 18 years of age.

Being registered in RKI (a Danish defaulters' list) can negatively impact your loan application. You can check if you're registered in RKI here.

Researching and understanding the specific requirements of the lender or financial institution you're considering is always advisable.

Tips to improve your chances of getting a Loan

Whether you're looking to finance a significant purchase, consolidate debt, or manage unexpected expenses, securing the best loan terms is crucial. Here are some practical tips to enhance your loan application and increase your chances of approval:

  1. Maintain a Good Credit History: Your credit score plays a pivotal role in your loan approval chances. Regularly check your credit report for any inaccuracies and ensure timely payments on existing debts.
  2. Stable Employment: Lenders favor borrowers with a consistent income stream. Being in stable employment or having a steady source of income can significantly boost your chances.
  3. Limit Loan Applications: Each time you apply for a loan, it's recorded on your credit report. Multiple applications in a short period can be viewed as financial distress, potentially reducing your approval odds.
  4. Clear Existing Debts: If possible, pay down or consolidate your current debts. A lower debt-to-income ratio makes you a more attractive candidate to lenders.
  5. Save for a Larger Down Payment: If you're taking out a secured loan, a larger down payment can demonstrate your financial commitment and responsibility.
  6. Provide Accurate Documentation: Ensure all the paperwork, from income statements to residency proofs, is accurate and up-to-date. Inconsistencies or missing documents can delay or even derail the application process.
  7. Understand Loan Terms: Familiarize yourself with the loan's terms and conditions. Being well-informed shows lenders that you're serious and have done your homework.
  8. Establish a Banking History in Denmark: If you're new to Denmark, consider opening a bank account and maintaining a good banking relationship. This can help establish trust with local financial institutions.
  9. Consider a Co-signer: If your credit history is not strong enough, consider having a co-signer with a solid credit background to back your loan application.
  10. Seek Professional Advice: Consulting with a financial advisor can provide you with insights into the best loan products suited to your needs and help you present a solid application.
  11. Build Relationships with Banks: Sometimes, having a long-standing relationship with a bank can play in your favor. They may consider your overall relationship when making a lending decision.
  12. Stay Away from RKI: Ensure you're not registered in RKI (Ribers Kredit Information). Being listed in this register can severely hinder your chances of loan approval.
  13. Evaluate Your Need: Borrow only what you need, and ensure you have a clear plan for repayment. Overborrowing can strain your finances and make lenders hesitant.

By following these tips and being diligent about your finances, you can improve your odds of securing a loan on favorable terms in Denmark.

Kristian Ole Rørbye

ABOUT Kristian Ole Rørbye

Kristian is from Denmark but now lives in Thailand. As a foreigner in another country, he knows the need to get a good start, especially in finance, such as taking out loans, buying a car, and finding the best internet at a reasonable price.

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