Six things to know before taking out a loan in Norway - The Local

A foreigner can obtain a loan once they have lived in Norway and have a stable income. While personal credit can be an essential tool for managing personal and household finances, it is essential to avoid accumulating unnecessary debt. Make sure you fully comprehend the terms of any loan you are considering. You can go through Norskeanmeldelser for different opinions on Norway’s small loans.   

Are you a Norwegian citizen? You can apply now if you’re over the age of 18 and working full-time. Foreigners who have lived in Norway for several years are eligible for personal loans. To be accepted, you usually need to be a permanent resident. It can take a long time to find a loan. Finding the right loan when you live in Norway is even more difficult, mainly when multiple banks compete for your business. Consider checking out Ferratum for significant experience in getting a better loan offer.

Here are a few tips that can help you through the process.

  1. Do your findings

Regardless of why you need a loan, whether it’s to refinance existing debts, buy a new kitchen, or get a new car, look into your finances and create a (realistic) budget for the amount of money you will be able to afford to pay back every month if you take out a loan. Calculate your expenses and fees, taking into account any other loans you might have.

  1. Make use of a loan broker.

You’re probably inundated with offers from banks, all of which attempt to entice you to take out a loan. However, sifting through all of them can take a long time. Using a loan broker makes finding a loan much more accessible. A good broker takes care of your application and ensures that banks compete for you rather than the other way around. Oh, and the service is complimentary.

  1. Combine all of your loans.

A single large loan is less expensive than a series of small loans. Consider combining all of your loans before submitting a new application, as this will often result in a lower interest rate. Loan experts can assist you with your application and make your financial life more manageable.

  1. Pay attention to detail.

Granted, you need the money right now, but your loan application will only be considered if you provide complete and accurate information. Of course, banks want to lend you money, but not at any cost, so make sure your finances are in order. You can borrow up to 500,000 kroner if your loan application is approved.

  1. Family matters

Many loan applicants have benefited from the bank of mom and dad in the past, but it is not always open for business; including a co-applicant increase your chances of getting a loan, which leads to better terms and a lower interest rate. This method is especially true if you are new to Norway. A co-applicant can be your spouse, registered co-habitant, and, in some cases, friends and parents.

  1. Examine all offers

You almost certainly use a price comparison website before booking a flight or hotel. When looking for a loan, the same logic applies. Using a good service that communicates directly with the banks makes the entire process much more manageable. You will receive a flurry of messages with loan offers from various banks and loan providers minutes after applying. Then the decision lies in your hand to go for the best offer for you based on factors like interest rate, monthly costs, and bank fees. After the loan has been processed, your loan team follows up on completed applications.