Loans in Denmark

Are you new to Denmark? Are you struggling with financial resources and are in need of an additional source of money? Well, availing loans in a new place can get challenging without attaining a detailed understanding of the same. If you are interested to apply for a loan in Denmark, make sure to give the article a read and explore the facets that can help you. Here, in this blog below, we will unveil the different types of loans in Denmark, which can help ex-pats to the core.

Fast loans in Denmark

Go directly to:
  1. Loan providers
  2. Types of loans
  3. FAQ about loans in Denmark

Loan calculator

So, what are the best loan providers in Denmark and which of them offers the best terms and conditions? We have listed below the most frequently used providers in Denmark .

Be aware that Borrowing money costs money

Interest Payment Period
Letfinans.dk 3,55 – 19,95 % 12-144 mths
Ferraturmbank.dk 3,50 – 24,99 % 5-60 mths
Bankly.dk 7 % 12-144 mths

What are the different type of loans?

1. Personal Loan:
A personal loan can be accounted as a type of loan which falls under the category of unsecured loans. The loan is usually borrowed based on your circumstances: how much you earn and the overall monthly outgoings. It is seen that most of the time, financial providers offer a personal loan of up to 155000 DKK for ten years to pay bills for weddings, bills, and many other things.

2. Car Loan:
A car loan is also a type of loan people seek for buying a car. Although it falls under the category of personal loan, it is a type of secured loan provided by dealers and online brokers for buying a vehicle. However, there is one major thing to remember when applying for a car loan. If, by any chance, you are unable to meet the requirements of monthly installments, then your car can be confiscated.

3. Home Loan:
A home loan is an amount that is borrowed from the financial sector for buying a home. Usually, the bank or any other financial institution lends the money for a home loan, and it has to be paid in easy monthly installments. The home loans are further divided into many categories, which are mentioned below:

  • Home purchase loan: for buying a house within your budget.
  • Construction home loan: this type of home loan covers the cost of building a house.
  • Land purchase loan: this type of loan is applied for buying a plot of land.
  • Home repair loan: as the name suggests, this loan is taken for repairing and restoring your home.

4. Student Loan:
A student loan can be explained as money borrowed from a bank or a lender for paying the college fees. The loan, along with interest, has to be paid back later over time. Usually, it is seen that the money taken for a student loan is for books, tuition, room, and other expenses.

5. Homeowner loan:
A homeowner loan is a secured loan used against a property and is available to people with decent credit history. The overall time to repay this loan is 25 years, and one can borrow up to 90000 Danish Krone.

6. Guarantor loan:
A guarantor loan is designed for people who have a low credit score and history. The repayment of the loan involves a guarantor if, for any chance, you fail to pay back the installments.

7. Peer-peer loan:
his type of loan is usually borrowed from friends and colleagues instead of a financial institution. You can reach out to similar people through peer-to-peer websites and then act as intermediaries.


FAQ about loans in Denmark

A repayment holiday is a period agreed with the lender when you don’t make repayments of the loan. These are helpful if, for any chance, you lose your job or your current circumstance change.

Yes, you can get a joint loan with someone else; however, both of you must share the same address.

Applying for a loan online can happen in minutes if all your details are ready. However, some secured loans take longer as lenders will need to evaluate the property.


Conclusion

Now that you know the types of loan in Denmark, it will not be a problem to apply for one. Next time you are about to move to any country globally, check for the loans and then make an informed decision.