How to get a loan in Denmark
Relocating to a new place can be quite the affair, especially without a thorough knowledge of the local rules and regulations. Among varied concepts, finance is one such facet that needs streamlined information. Hence, in this blog today, we shall explore more about loan in Denmark, the types of loans available, and how to get one. Keep reading to unfold the information.
List of loan providers in Denmark
All these loans providers offer different rates and options for different prices. Comparing the specifications of each loan provider can be time-consuming. Are you wondering which provider offers the best deals or the best options? We have listed the most reliable loan companies below while using the following criteria:
Be aware that Borrowing money costs money
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Lanio is a loan comparison platfrom where you can compare the best loan offers from several banks (free of charge). They have a great Trustpilot score and you can get a loan up to Loan up to DKK 500,000 – interest rates starts from 3.49% |
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Letfinans is an incredibly outstanding Danish loan provider from where you can acquire 100% secure, reliable, and affordable loans for various purposes. |
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Ferratum Bank is your only destination if you want to borrow money for different purposes in Denmark. Furthermore, if you are 21+ years, you can opt for online banking in Ferratum Bank. |
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Cashper is a widely famous online Danish loan provider from where you can get the best, quick, and secure loans at your convenience for many purposes. |
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Can you take a loan in Denmark?
As a citizen in Denmark, you have a wealth of opportunities to take on a loan, and that too without any security. The quick loans have not much to do with banks, and in fact, these are external loans that can be taken from private companies.
Individuals can even opt for bigger loans, and they will be made available to you in only a few minutes. You can often attain the money in your own account the same day as applying for the loan. Isn’t that too convenient? Well, indeed it is!
How do I take a loan in Denmark?
While living in Denmark, you have two distinct options for borrowing money:
- Either you can apply for a loan in the bank
- Or else, you can apply for a loan from a private company
It is quite strenuous to get the loan approved from the bank. This is because, to get in approved, you will be required to show a lot of proof, like a fixed income. It is also crucial for you to offer security while backing it up with proper explanations. Even after making all of these accessible, there is no guarantee for you to receive the loan. Instead, you can get the loan approved from a private company which can be done through a streamlined approach.
How to get a private loan Denmark?
The loans that you can acquire from the private company are known as fast loans, and there is no need for you to offer any security for the money. At present, you can apply for loans from 500 to 400.000 kroner. Hence, you do not need to face any hassle of providing security or proof of fixed income and the like.
Instead, you can make most of the money and do whatever you have in mind. You are not even answerable to the company for how you will use the money. You can take the money for a new house, car, or even a vacation without being answerable to anybody else. Isn’t that great?
Steps to apply for private loan
As easy it is to get a private loan, it is also easy to apply for one.
Here are a few steps:
- You need to have a Danish bank account
- You must be at least 18 years old and above
- You have a Nem-ID
- You must not be registered in RKI
- You must have fixed income (not every private company demands one)
Types of loans available
Student loan Denmark:
As the name suggests, a student loan in Denmark might be the necessity of the hour, with the economy being quite uptight. It can be necessary for students to seek a loan for food. Such loans need to be granted immediately, and hence these are fast loans, however, for a short-term period.
These short-term loans will be credited to the account only within a few hours. Having cheaper personal loan interest rates in Denmark, the loans are a boon for all students in Denmark. You might even find a short-term loan without any interest rates if you are lucky. In other words, all you need to do is just pay the amount back without any additional amount.
A student can apply for the loan or ‘SU’ loan; however, it takes relatively longer to process. Hence, if you need money immediately, you must apply for a quick loan.
Unsecured loans
These are the most common kinds of loans, and you will be able to loan 500.000 Danish kroner without any mortgage. These, however, evaluate your expenses, income, and debt very closely.
Home/ Car loan:
A car or home loan in Denmark means that the bank received a mortgage over the car or the house, as you pay the loan slowly to the bank. If you cannot pay the loan off, you need to give your house or car away to secure the payment.
Payday loans:
This is the most expensive loan if you look at the percentage of costs as compared to the amount of money you are borrowing.
How to get a loan in Denmark?
There are varied options to get a loan from; however, make sure that the expenses attached with the loan are nominal. While comparing the loans, you must evaluate the following with loan calculator Denmark:
- ‘AOP,’ meaning annual expenses in percent. With this, you will be able to evaluate how cheap or expensive the loan is.
- Interest rate(rente)
- Starting fee(etableringsomkostning)
- Administrative fee (administrationsgebyr)
11. Advantages of online loans in Denmark
Online loans can help you escape the financial crisis quickly, and you will not have to visit your bank for the application. All loan processes are done online and will offer the best benefits. If you want a personal loan, you can do it through the best loan application that will provide the following benefits:
- Quick Disbursal: it is amongst the primary benefit you will get with online loan applications. Once the bank approves the loan, the cash will be transferred to the personal saving account without hassle.
- Quick Process: unlike conventional loans, personal loans are quicker with approval. The application process will take about 20 minutes, whereas the approval process will take a few hours. You can also opt for the cash loan on the same application day.
- Flexible Loan Amount: if you want quick money, you can apply for the needed amount and avail the amount on the same day.