Loans in Norway

A consumer loan, or forbrukslån, is an unsecured personal loan that you can use for almost any purpose. Since it doesn’t require any collateral, the interest rate is usually based on your credit score and financial situation. In Norway, you can typically borrow up to 600 000 NOK and repay over a period of one to five years. The loans listed at the top of this page are mostly consumer loans.

A fast loan is small consumer loan designed to provide quick access to cash, often with an easy digital application form and fast approval times. These loans are typically used for short-term financial needs. Fast loans are popular for their convenience, but they often come with higher interest rates and should be used responsibly.

You can reduce your monthly costs by refinancing expensive debt with a lower-interest loan. With this option, you can borrow up to 800 000 NOK.

You can apply for a mortgage to buy a house or an apartment. As a general rule, you must have 10% of the house price in equity.

In Norway, you can get a car loan with or without collateral. With collateral, the car is used as security for the loan, which usually results in a lower interest rate. You’re generally required to pay at least 20% as a down payment. If you don’t use the car as collateral you have to apply for a consumer loan, usually with a higher interest rate.

To borrow money in Norway, you must be of legal age, which means at least 18 years old.
You need to be legally of age to sign binding agreements, such as a loan contract.
Some banks have a higher age requirement, such as 20 or 25 years.

You normally have to be a Norwegian citizen to borrow money in Norway. Lenders may also require that you live at a Norwegian address, and that you have lived there for a certain amount of time.

All lenders require that you have an income. After all, this is what you will use to repay the loan.

Several banks require that you have no credit default, or any ongoing debt collection case when applying for a loan. Still, there are several exceptions to this rule, which we will return to.

The Lending Regulations state that your total debt cannot exceed five times your annual income before tax. If you earn 500 000 NOK you can have a maximum of 2.5 million NOK in total debt.This includes all types of debt, such as mortgages, car loans, student loans and consumer loans.

The regulations also state that you must be able to handle an interest rate increase. When assessing your loan application, the bank is required to calculate whether you can manage a 3% rise in interest rates. If the interest rate is 7% at the time you apply, the bank must check whether you can still repay the loan if the rate increases to 10%.

Repayment is the actual payment of the loan. Normally, you have to make repayments once a month until the loan is fully paid off.

This is the rental price for the money you borrow. The size of the interest can vary, both between different types of loans and within the same loan type depending on your credit score.

In addition to interest, you may have to pay fees and other charges. Setup fees and installment fees are common extra costs. There are also other fees, such as change fees.

The bank will send you a reminder asking you to pay the overdue installment and interest.

The next step is for the loan to go to debt collection. The bank can then demand that you repay the entire loan immediately.

Legal debt collection follows if you don't pay your debt. This means that authorities, such as the "Namsmannen", intervene to collect the debt.

Are there any alternatives to borrowing the money? Do you have the possibility to save up to the money you need instead?

A loan must be repaid even if your financial situation deteriorates. Find out what you can do to reduce loan risks, such as saving up a buffer and taking out payment insurance.

You can get help from customer advisors at the banks and loan brokers to calculate whether you can afford a loan.

A mortgage the natural choice if you buy a house. If you're buying a car, a car loan with collateral in the vehicle is likely the best option. Find loan types that offer the lowest borrowing costs based on what you plan to use the loan for.

The higher the loan amount, the higher the costs associated with the loan will be. Instead of thinking about borrowing as much as possible, try to set a goal of borrowing as little as possible.

There can be big differences in interest rates from one lender to another. Compare as many loan offers as possible and choose the best option for you. A loan broker can help you with this if you need an unsecured loan.

A loan application requires documentation of income and other debts. Find out this before you fill out the application.

BankID ensures that identification and signing of the loan agreement takes less time.

Check your phone and email so you can reply quickly if the bank has any questions about your application.

Not many lenders give loans to people with a payment remark. They think the risk is just too high.

If you have a payment remarkon your record, it may be difficult to set up a phone subscription, for example.

Many landlords perform credit checks on tenants and refuse to rent to individuals with payment defaults.

Banks and lenders prefer lenders who have a steady, reliable income.

If you already have a high level of debt compared to your income, it will be more difficult to get a new loan.

Payment remarks or ongoing debt collection cases almost always result in loan applications being denied.

A low credit score reduces your chances of getting approved for a loan, or being allowed to borrow as much as you would like.

Many banks have both minimum and maximum age limits for loans. You might be considered too young or too old.

This primarily applies to mortgage loans. If you don’t have at least 10% equity, your loan application may be rejected.

Most banks require you to be a Norwegian citizen or to have a D-number. Many also require that you have lived in Norway for a certain period of time.

Find out what interest rates different banks and lenders are willing to offer you. You can submit multiple loan applications yourself and choose the offer with the lowest rate. You can also use a loan broker like Lendo or Sambla.

A good credit score increases your chances of getting a loan. You may also qualify for a lower interest rate compared to someone with a lower score.

Do you have expensive fast loans or maybe a credit card debt? You can combine your debt into a single loan with a lower interest rate, giving you more money left over each month.

Don’t take out an unsecured personal loan to buy a car if you can get a secured car loan instead. A car loan can be significantly cheaper than a personal loan.

When you apply for a loan with a co-applicant who has their own income, banks see it as a lower risk of losing money. The reward could be a lower interest rate on the loan.

By making extra payments toward your loan, you can pay it off faster and cut down on total interest costs. The sooner you are debt-free, the less you will pay in interest over time.

Late fees increase the cost of your loan. That’s why it’s important to pay your installments and interest on time. If you run into payment issues, contact your lender immediately. You should avoid debt collection at all costs — it can become extremely expensive.

Taking out a loan can lower your credit score, as all debt is factored into a credit evaluation. However, the score will gradually increase as your debt decreases.

You might become ill, go through a divorce, or lose your job, for example. This can lead to financial difficulties that make it hard to manage a loan.

If you run into serious payment problems, things can go very wrong. If you own a home, for example, it could be forcibly sold so the bank can recover its money. You may also receive a payment default record, which makes the situation even worse.