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Loan in Denmark is very dynamic. First of let’s lay the foundation of a loan.
The term loan is used to describe a sum of money lent to another party with an agreement to pay it back.
In many cases, the lender usually adds interest or finance charges to the amount borrowed, which the borrower is required to pay in addition to the principal balance.
In Denmark, there are different types of loans that you can borrow from a bank, loan company, government, or other entity.
Regardless of the type of loan you require, it is advisable to research all your options before signing on that dotted line.
Generally, to acquire a loan, you may be required to provide specific details such as the reason for needing the loan, your financial history, and other relevant information.
The lender then reviews this information and approves or denies the loan based on creditworthiness, i.e. the borrower’s financial ability to settle the loan.
The terms of a loan are agreed upon by both parties (the lender and the borrower) before any money is disbursed.
Loan in Denmark: Loan Companies in Recent Times
These days, most of the existing loan companies in Denmark have a digital platform which you can easily access on your phone and apply for a loan within a few minutes without the need for collateral or a credit check.
Denmark has quite several loan companies (banks), and to help with your research, we have compiled some of the Top Loan Companies that you can trust to treat you with fairness and give you a remarkable service.
Top Loan Companies you can Trust in Denmark
1. Express Bank Loan: The first name on a helpful great list of top loan companies you can trust in Denmark is Express Bank Loan. This is one of the best and most highly trusted consumer banks that offers quick and easy loans in Denmark. The platform offers an assortment of instant loans, including car loans, construction loans, traditional consumer loans, and debt consolidation. This ensures that customers have a variety of options to choose from and helps them make the right choice.
Loans granted by Express Bank loan include a payment fee of 15 DKK, an administration fee of 25 DKK and a set-up fee of for the establishment of the loan at 1.360 DKK. The interest rate varies and there is a 14 days right of withdrawal on the credit agreement. The bank has over 30 years of experience and over 100,000 customers
2. LendMe Loan: The second loan company is LendMe Loan, a digital lending platform that helps customers to compare loans in Denmark from 17 different banks. How it works is that, when you are applying through LendMe’s platform, your application is sent to their different partners which includes some of the biggest consumer loan banks in Denmark.
Through this platform, you can apply for amounts up to 500.000 Danish kroner another great thing about LendMe is that it doesn’t request any financial pledges as a condition for lending you money which means you will be able to use the money to do anything you want.
Once approved, the money will be credited to your Danish Nemkonto (bank account) and will be available in 1-3 banking days.
3. Loan Denmark: This platform is unique in the sense that its services are reserved for Denmark citizens who can take on a loan without security. The platform offers various loan options from different lending partners, and the service is free, non-committal and non-binding.
You can easily acquire a loan on this platform using your phone and can apply for big loans which you will receive in your account on the same day that you apply for it.
You can apply for loans from 500 to 400.000 kroner and like LendMe, you can use the money for anything you want, as the loan companies don’t ask what you will be spending the money on.
4. Samlino.dk Loan: Another great place to get a loan is on Samlino.dk, a platform which offers multiple loan options in Denmark. It is incredibly easy to apply for loans on this platform. You can get a loan right now and pay it back on your next payday. However, there are some expenses associated with the loan.
Samlino.dk helps customers to get multiple choices which will ensure that they get the cheapest loan price.
5. AllCredits Loan: This is a reliable loan platform that has helped customers take competent loans for over 15 years. The platform features loans and credit companies in Denmark, recommendations and comparisons of loan offers, loan terms, interest rates, and other information that can help customers choose the most profitable credit company. One of the loans it offers is Business loans which is meant for entrepreneurs.
Other banks where you can get loans
1. Bank Norwegian
Interest rate: 4.99 – 18.99%.
The amount that can be borrowed from DKK: 5,000 – 400,000.
Interest rate: 2.95 – 24.99%.
The amount that can be borrowed from DKK: 3,000 – 500,000.
3. Digi Finans
Interest rate: 3.49 – 19.95%.
The amount that can be borrowed from DKK: 10,000 – 500,000
4. Basic Bank
Interest rate: 4.95 – 19.95%.
The amount that can be borrowed from DKK: 30,000 – 500,000.
Interest rate: 3.49 – 26.4%.
The amount that can be borrowed from DKK: 10,000 – 300,000.
How to Apply for a Loan in Denmark
- Check your credit score: When considering taking a loan, the first step to take is to check your credit score and ensure that you are not having troubles financially, i.e. that you can afford to pay back a certain amount from your salary and still be able to take care of yourself.
- Consider your options: Secondly, ensure that you’ve exhausted every other option before you decide to take a loan. Try borrowing from friends or family.
- Select a type of loan: The next step is to decide on which type of loan you would like to take and what you will spend it on. We have loans for personal use, cars, mortgage and collective loans.
- Peruse and compare loan providers: Next, research the loan providers available and consider metrics such as interest rates and yearly expense in percentage, Loan time, Startup fees, and others.
- Pick a loan provider and apply for the loan: Once you’ve decided on the loan provider that fits your needs, the next step is to apply for the loan and wait for approval.
- Provide the required documentation: Next, give the lender the required documentation.
7. Accept the loan and start working on paying it back: The final step is to accept the loan, use it and start working on paying it back according to your credit agreement.
Criteria for Applying for a Loan
1. You must be at least 18 years old.
2. You must have a personal Nem-ID.
3. You need to have an income.
4. You need to have at least 6.700 dkk available every month.
5. You need to get your credit rating approved.
6. You must not be registered in RKI.
7. You must have a Danish CPR number.
Types of Loans in Denmark
Below are the types of loans that you can apply for on the Danish loan market:
1. Quick loan: This is very common as you can apply and get approved quickly. The amount lent is usually small and the repayment period is usually short.
2. Consumer loan: This is also a fast loan where you can borrow money for whatever you need and you will in most cases have the money in your bank account within a few days.
3. Mini loan: This is similar to a quick loan and makes it possible to borrow money quickly and easily, especially when you get an impromptu bill.
4. Car loan: You can use this loan to get your desired car without stress.
5. SMS loan: You can easily apply for this type of loan via your phone or computer. It is often approved within a day.
After all, is said and done, we hope we’ve been able to provide you with enough information regarding the Top Loan Companies that you can trust in Denmark, and the process to follow when you want to apply for a loan.