What loans can I choose from?

There are many types of loans to choose from and this can be difficult to overlook. However, there are seven types of loans that you should know the difference. You can read more about each of the seven different loans below – including you can read more about the advantages and disadvantages of the different loans.

Consumer loans in the bank

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Many banks offer consumer loans to customers where they feel there is a guarantee to get the money back. This means that in most cases, the bank goes in and assesses a customer’s credit worthiness before making a consumer loan.

If you want a consumer loan in the bank, it is likely that the bank would like to hear exactly what the loan is to be used for. Often the bank will be more cooperative if it is either for an investment in something of value or if the pointers are to be used for something that creates value – for example renovation of a room. This also means that the bank may be reluctant to approve a loan, which is to be used, for example, on a journey.

When you apply for a consumer loan, the bank goes in and looks at your annual statement and your consumption so far. This can give you an idea of ​​whether you will be able to repay the loan. Since banks only lend to people with whom they feel comfortable, interest rates are lower than, for example, with quick loans.

SU loan

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An SU loan is a type of loan offered by the State as a supplement to the SU. An SU loan is particularly distinguished by being extremely cheap. You pay 4% in interest while reading, and about 1% in interest when you finish reading. This makes the SU loan incredibly cheap, but on the other hand, there are also requirements that you must be a student to receive it.

If a student wants to receive SU loans, they can receive just under £ 3,000 a month while reading. However, it is possible to receive extra loans if, for example, you are a provider or have other obligations.

In addition to the SU loan being incredibly cheap in interest, it is also worth noting that there are no foundation fees or similar associated with the loan. In other words, it is free to take out an SU loan, and you only have to pay off the loan when you have finished your studies.



Many Danes have a cash credit, and although many do not consider it, it is also a type of loan. When you have a cash credit, the bank allows you to borrow any amount they have fixed at any time.

The advantage of a cash credit is that the bank does not interfere with what the loan is to be used for. This also means that the interest rate is typically a bit higher than on a regular bank loan.

Many Danes are happy to have a cash credit as it is a financial security that can be used in emergencies or if the account is running out at the end of the month.


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Mortgages are the common way to finance home buying in Denmark. You can typically get a mortgage that covers up to 80% of the value of the home. You have to either finance the rest of the amount yourself, or talk to the bank about financing the rest.

Mortgage Brokers

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As mentioned above, a mortgage is a loan that the bank grants to finance a share of the value of a home. The bank will typically require you to pay 5% of the value of the home yourself. That is, the bank can finance up to 15%, while the mortgage fund finances the rest.

In connection with a mortgage, it is important to note that the interest rate in the bank is typically a bit higher than in the mortgage association. You can therefore save a lot of money if you can pay 20% of the value of the home yourself.

Car loans

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If your finances are good and stable, then you also have the option of getting a car loan at the bank. It is typically easier to get a car loan than a consumer loan of the same size. This is because the bank has the car as collateral for the borrowed value and thus has a lower risk. Furthermore, the lower risk also means that the interest rate is in many cases lower.

How much money you can borrow for a car depends largely on your income and financial situation. For example, if your employment relationship has been loose, then getting a car loan can be difficult. It can also prove to be difficult if you are very young.

payday loans

 payday loans

Mortgages are typically smaller loans used for consumption. There are now many agencies offering quick loans and it is not difficult to get approved for quick loans.

When you take out a quick loan, don’t explain what you want to spend money on. However, there is often a high interest rate that you have to pay for the loan. The high interest rate on mortgage loans is also due to the fact that a mortgage loan is typically a very short-term loan. For example, it is not uncommon for a quick loan to run over 14-30 days, after which it must be repaid.

You can often get approved for a quick loan in minutes if you go online, though the different lenders often have individual requirements – for example, age requirements that may vary.

SMS loan

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The SMS loan is a type of quick loan where you can take out a loan by sending an SMS. This type of loan usually requires that you have already been approved by the lender. For example, you may be approved if you have previously borrowed money there and paid them back.

Like the quick loan, there is typically a high interest rate on an SMS loan. On the other hand, it is unbelievably easy, and no one interferes with what the money is to be spent on. Many Danes use these types of loans to make their finances more flexible. There are high interest costs, but this is typical of loans where there is no guarantee that the loan can be repaid.