Loans in Denmark – Get a loan from 100 to 500,000

You will get to know anything about loans in Denmark by reading our comprehensive article. You can compare right here and get a quick loan from 100 and all the way up to half a million Danish Kroner.

*The overview does not necessarily show the full market picture.

*ØkoNEMi receives commission from the suppliers. This might influence the ranking

✅ Borrow money in Denmark

Loan in Denmark is here used as an umbrella for the borrowing of money without security, also called an unsecured loan. And where the money is not earmarked for a specific purchase.

This is why APR becomes a key concept which we will come back to later. This goes for consumer loans, unspecified bank loans in Denmark, overdraft facility, credit cards and so on. Car loans are also included here because the value of the car, and therefore the security, decreases over time. 

✅What is a payday loan in Denmark?

A payday loan is a personal loan without any collateral and where you are free to use the money whatever you see fit.

They are quick loans and paid out very fast. And all you have to do is to apply and you will receive a loan quote in your email inbox.

If the loan amount is low and below 3.000 kroner, the loans are often called micro loans.

The loan quote is noncommittal until you accept it. That means that there is nothing wrong in applying for more than one.

✅ APR

The most important figure to keep in mind if you are looking for a private loan in Denmark is APR. This is an abbreviation for annual percentage rate.

APR is a function of the collateral for loans and the security for the lender of a loan in Denmark is limited. As a consequence of the lack of security and because the performed credit evaluation is limited the APR for these kind of loans can be high. This is due to the fact that people normally obtaining a quick loan in Denmark can be under average payers. And quick loans are usually on low amounts.

Loan companies in Denmark are obliged to inform consumers about the APR. 

If you buy on credit in a store, APR is once again the most important figure to keep in mind. The interest rates can easily be low or non existing. But if that is outweighed by higher fees or things like that, the advantages of low interest rates are offset.

✅ Cheapest loan in Denmark

You get a cheap fast loan as follows;

First of all, you need to know how much money you are going to borrow. The more you borrow, the more expensive it naturally will be. So we can eliminate a lot of costs by borrowing less money.

Next you need to determine for how long you will need the loan. The faster you repay it, the fewer interest rates you will have to pay. Which in essence makes the loan cheaper.

Now that we have the fundamentals in place, we can start choosing between loans.

✅ How to get the best loan

Now you can sort the money loan by choosing amount (lånebeløb in Danish) and your age (din alder in Danish).

Hereafter you sort them by interest rate (laveste rente in Danish). Rates is not as good as APR, but it will have to work as a proxy.

So now we can see the loans with the lower interest rate interval. You should not be afraid to apply for more than a single loan. This way you make sure you get the cheapest loan.

You can compare cost when you receive the loan quotes, and you are not liable before you accept one of these loan quotes.

✅ Future impact of a private loan

Should you actually be able to buy on credit without any sort of extra costs, it can easily be a decent solution. But you just need to pay attention to which meaning it will have for your economy to pay the monthly/quarterly repayments. And if the store really is willing to sell on credit without any sorts of extra costs for the customer, they would probably also be willing to give some discount at cash payment.

Are you borrowing 10.000 kroner at 10% interest with repayment after 10 years. And are you only paying interest until repayment, you will end up paying 10.000 kroner in interest for having borrowed 10.000 kroner.

✅ Consumer loans in Denmark

An overdraft facility is a standing amount a bank makes available for the borrower without a fixed repayment schedule. A fixed amount is agreed, 10.000 for instance, and of that you can use and repay as you should wish and need.

The APR is higher than for classic bank loans. But on the other hand you have the flexibility to use and repay the credit as wished and needed. This means that you only have interest costs of the money you actually use. For a standard bank loan you pay for the total borrowed amount disregarding the use. And you have fixed terms for when you have to repay the money.

For an overdraft facility you can also get high interest rate for your own money, as you save interest costs when you put money into the account and thereby draw less on the credit. If you spend more the the agreed amount, you account moves into overdraft. And then you will have to pay even higher APR than agreed at by account conclusion.

✅ Fast credit in Denmark

You can get a fast credit structured in various ways in Denmark. The most obvious could for instant be;

• Payday loan
• Quick loan
• Fast loan
• Consumer loan

✅ Credit card

Credit card such as Mastercard, American Express and certain store cards for department stores and gas station, are different from a Danish dankort. A dankort is a debit card, by not having the money subtracted from your account at once. But having the consumption for the month added up and drawn simultaneously.

This provides you with at least one month of credit. And can for some people give a better overview of their consumption. Besides that, it increases the possibilities of withdrawing and using money when you are abroad. Here maximum limits on dankort/VISA exists. For other people credit cards can be an unnecessary temptation.

✅ Payday loans

The appearance of payday loans has increased significantly during the last couple of years. And they have in common that approval of the quick loan happens almost immediately. And that the costs are soaring. Be very carefully when on the look for a quick loan.

✅ How much can I borrow?

For a loan without secury it is possible to borrow half a million Danish kroner. Of course, it also depend a lot of the borrower of his/hers personal finances. 

✅ Student loan in Denmark

Student loans, or a SU loan as they are often called, are quite common in Denmark. The government lends out money to students on a monthly basis at fairly attractive rates. The monthly amount is fixed, but the student can decided which months they wish to utilize.

The money plus interests only has to be paid back as of January 1. the year after finalisation of education.

You can read more about government funded student loans right here.

✅ Car loans in Denmark

For a car loan collateral exists in the car. But as the car concurrently loses value the collateral for the loan provider naturally becomes weaker in time. This is why the interest rate for this kind of loan is higher than for mortgage.

Car leasing is another way than a standard loan to finance a purchase, in this case a car. For traditional car leasing you pay an amount upfront to make a deal. Whereafter you pay a monthly leasing amount.

If you like to change car regularly, car leasing can be a good solution. You can at termination of the deal just redeliver the car to the leasing company and go out and lease another car. You do not have the hassle or risk by having to sell a used car. When leasing a car it is the leasing company who takes care of car repairs. So if you do not want to take on that risk, leasing is a possibility.

✅ Mortgage loan in Denmark

Mortgage or housing loans in Denmark work different then in most other countries. The first 80% of the purchase price can be borrowed via a mortgage loan which is traded directly in the Danish bond market.

This is the main reason for the very cheap mortgage loan possibilities in Denmark. It is a secured loan with direct security in the leveraged property. So a collateralized loan obligation with a very low risk of losing money for the borrower.

The mortgage institute works as a intermediate between the borrower and the lender, and therefore do not lend out money directly.

The next 15% can be borrowed at a bank and the last 5% has to be delivered in cash.

✅ Hints for loans in Denmark

If banks do not wish to lend you money, you really need a valid reason to borrow money elsewhere.

Overdraft facility can be a flexible and cheap alternative to standard bank loans, but it is of course better only to use money you have already earned.

Leasing should be examined as an alternative to a car purchases.

Always repay the most expensive quick loan first.