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Loan money fast – all about loans in Denmark

Loan money fast - all about loans in Denmark

Want to borrow money? Then you’ve probably already discovered that the loan market is large and unmanageable. Too few people properly examine their options before they borrow money and it is not difficult to understand.

It can be incredibly difficult to find the best place to borrow money quickly for you. Loan money fast through Werther! We have made it safe and painless to find the right loan. In this article we give you a full overview of the Danish loan market, so you avoid paying too much for your loan.

Loans with and without collateral – do you manage the loan market?

Loans with and without collateral - do you manage the loan market?

There are two main types of loans, namely collateral loans and unsecured loans. There are advantages and disadvantages to both types of loans. The majority of the loans you find at Werther are without security.

The article continues below the image.

Loans without security

Online loans are almost always unsecured loans. You do not need to own a car, house or other valuables that can be provided as a guarantee. You can use the money exactly as you want, without having to explain to what.

Therefore, these loans are usually more expensive than the secured loans. In return, there is greater freedom for you as a borrower.

features

  • Interest rate of 4-20%
  • Maturity of 1-15 years
  • Size of 5,000-500,000 kr.
  • No specific purpose of the loan

Types

  • Consumer loans. The consumer loan comes in all sizes. You can borrow DKK 5,000-500,000 for a period of 1-15 years. The loan type can be equated with private loans, personal loans and has even more synonyms.
  • Payday loans. A small loan, typically DKK 500-15,000, paid back over 15-90 days. These loans are paid out quickly and the requirements are easy to meet. This type of loan has several synonyms, such as SMS loans, mini loans etc.
  • Overdraft. A credit agreement, typically DKK 5,000-50,000, where you can regularly raise up to the agreed limit. You can both open a bank overdraft with your bank or through an independent provider.
  • Samlelån. A collective loan is a larger consumer loan, which is typically used to redeem a number of smaller debt items.
  • Car loans. There are also unsecured car loans. It is a car loan where you do not have to provide security in the car, and therefore it is the same as a consumer loan in theory. You can take this type of car loan if you want to buy a used or new car.
  • Mortgages. You can take a bank loan to fund the deposit for your home. You can finance up to 80% of the loan with mortgage loans, 5% with own money and 15% with the home loan.

Loans with security

Loans with security are used for a specific purpose, such as house or car. It is a requirement that an asset be made available in case the loan is breached. If you lend to a car, the lender often requires security in the car.

This makes the loan cheaper, so it is a good solution if you have a specific purpose for your loan.

features

  • Interest rate of 1-5%
  • Maturity of 5-30 years
  • Size of +30.000 kr.

Types

  • Mortgages. A loan issued for home purchase against real estate security. You can finance up to 80% of your home with a mortgage loan
  • Car loan. Issued against security in the car. At present, the cheapest car loan on the market is the car loan from Diba, which starts from 1.76% in debt rate and an APR from 3.19%. Read more about Diba here.
  • Guarantor loan. As security for the lender, a guarantor is liable for your loan. The guarantor pays back the loan if you do not. In this way, this person acts as an extra security for the lender. This type of loan is typically used if the borrower is in the RKI.

Advantages and disadvantages of online loans

Advantages and disadvantages of online loans

  • Great deals. The lenders compete for you as a customer. As a first-time customer you can, for example, borrow interest-free.
  • Low interest rates. The online lenders did not use to compete with bank interest rates, but today you can borrow money on the internet from 3.90% in interest. It is more than competitive.
  • Faster payout than the bank. When you borrow on the internet, you get your loan quickly paid out. You do not have to talk to a bank advisor first.
  • Painless application. You can handle the entire application process from your computer, smartphone or tablet. In some cases you are called by the lender.
  • Beware of quick loans. Although the number is falling, some are still caught in debt spirals. A quick loan has a short maturity and it is important to pay on time, otherwise the loan can become expensive.
  • Incredible market. There are a lot of online lenders, and there are only more. It is positive in terms of competition, but it also makes the market more difficult to understand for ordinary people.

5 good advice before you borrow money

5 good advice before you borrow money

The 5 tips are elaborated below the picture.

1. Compare first – it’s free!

If you do not know the different loans on the market, the likelihood of choosing too expensive a loan is very high.

Use our loan comparison to avoid paying too much.

2. Always get more offers – it’s also free

You first know the price of the loan when you stand with the offer in hand. Not everyone knows, but applying for a loan is both free and non-binding. This means that you can still refuse the loan even after you apply.

In addition, you actually have 14 days of right of withdrawal on loan agreements. So you do not run as much risk as you might think.

3. Consider the loan terms – APR, maturity and other

Should you choose a long or short term? What about grace months and APR?

The lenders are distinguished by different parameters. Consider what is most important to you before you borrow. Here comes a full overview.

Unique Terms Description
Quick payout Some loan providers offer immediate payouts while waiting for 2-3 business days with others.
Runningtime A short maturity means a higher performance, but a cheaper loan. A long maturity gives a low performance, but a more expensive loan overall.
Monthly payment Choose a loan provider that can give you a monthly allowance you can afford to pay.
Fixed rate In many cases, you will be offered a fixed interest rate, which is usually more expensive than variable. In return, it may be easier for you to plan your repayments.
APR APR is the most important key figure if you look at loans with a maturity of at least 1 year. There is a direct connection between the APR and the total price of the loan.
Identification with NemID Most loan providers identify you using NemID. Sometimes you also need to submit a passport, driver’s license or other ID image.
Customer service For most loan providers, you can call every weekday while a few are open on weekends.
Weekend payout A few loan providers also pay out loans on weekends and holidays. You can always apply for the weekend, but you do not always get answers before next weekday.
Loans to specific groups Self-employed and students are not always easy to take out a loan. Some loan providers focus specifically on these groups.
Redemption without fees It is not always free to redeem your loan without fees, so check it out before you borrow.
Depreciation-free months In grace-free months, you do not have to pay installments, but only interest expenses. It gives you a respite for certain months, but your loan becomes more expensive overall.
loan Insurance If you are the cautious type, you can purchase a loan insurance if you were to become unemployed or similar.

4. Become an attractive lender (increase your credit rating)

There are several ways you can increase your credit rating. In fact, we have written an entire article on the subject that you can read here.

To summarize the article, you can do the following:

  • Use the co-applicant. The fastest way to increase your credit rating is by applying with another person. Now both your economies are being considered. If you have an income of DKK 300,000 a year and your co-applicant has an income of DKK 350,000, your total income is DKK 650,000. It is a huge difference.
  • Add a budget. Show the lender that you are taking the repayment of your loan seriously. Then you can get a lower interest rate.
  • Repay debt. If you already have debt, it is harder to take out a loan. If you settle it, the price of your loan will fall.
  • Increase your income. If you can earn more, the likelihood of you defaulting on your loan is lower in the lender’s eyes. It gives a cheaper loan.

5. Remember your interest deduction

Do you have two loan offers, one of which has a low interest rate but high formation costs and the other has a high interest rate but low formation costs?

Then you have to choose the loan with high interest, because you can deduct the interest from tax.

You can’t do that with the formation costs and other fees. Some lenders automatically report your interest rates to TAX but not all of them.

Who lends you money?

Who lends you money?

Here you can read more about each loan provider. For a complete list of all loan providers and banks at Werther you can click here (updated automatically)

Who can apply for a loan? 

Who can apply for a loan? 

Not all people have a good enough economy to borrow money quickly. It is not without demands, just because you go by the bank.

However, the requirements are a lot easier than with the banks.

Here is a list of requirements that most loan companies make their customers. There may be differences between the requirements of the lender to the lender.

  • Requirements for age. You must be at least 18 years old. Some lenders have a higher age limit, for example, 20, 23 or 25 years.
  • Income requirements. Some loan providers make no demands, while others require that your household has an income of, for example, at least DKK 200,000.
  • Requirements for work. Some loan providers require you to have a permanent job or a fixed income.
  • Requirements for RKI. It is extremely difficult to take a loan in Denmark if you are registered in the RKI or Debtor Register.
  • Residence requirements. The vast majority of lenders require you to have a Danish address.
  • Requirements for NemID. The most normal is to identify and sign the loan with NemID.

You provide all this through the application process. The fastest loan providers make sure that you have the money in your account a few hours after you apply.