If you’ve recently moved to Denmark and are navigating your financial options, you might be wondering how borrowing money works here and whether money borrowing in Denmark is even possible for foreigners. Whether you’re planning to finance a car, cover a sudden expense, or take out a mortgage on a new home, understanding the Danish banking and lending system is essential.
In this guide, I will help foreigners, EU and non-EU alike, understand how money borrowing in Denmark work, what types of borrowing options are available for foreigners, and how to approach the process with confidence. From short-term mini-loans to long-term mortgages, I’ll walk you through what to expect, how to compare offers, and what you’ll need to qualify.
If you are looking for more detailed guides on specific types of money borrowing in Denmark for foreigners, you may want to check out my other guides, where I cover these topics in detail:
- The Best Bank Loan in Denmark for Foreigners
- The Best Short-Term Loan in Denmark for Foreigners
- The Best Mortgage Loan in Denmark for Foreigners
- The Best Car Loan in Denmark for Foreigners
- The Best Boat Loan in Denmark for Foreigners
Money Borrowing in Denmark as a Foreigner: Is It Even Possible?
Yes, loan and money borrowing in Denmark is possible for foreigners. Yet, your eligibility will often depend on your residency status, income, and documentation.
In general, most Danish lenders require the following before you can apply for a loan:
- A valid CPR number (your Danish personal identification number)
- Registered address in Denmark
- A steady source of income, usually from employment in Denmark
- A Danish bank account
- In some cases, a NemID/MitID to apply digitally
Money Borrowing in Denmark for EU vs Non-EU Citizens
If you’re an EU/EEA citizen, your chances of approval may be higher when it comes to money borrowing in Denmark, especially if you’re already working or studying here. Non-EU citizens may face more documentation requirements or be limited to certain types of loans. However, once you’ve established some financial stability and can show proof of residence and income in Denmark, your options broaden significantly.
What if I Don’t Have Danish Credit History?
Denmark does not use the same credit scoring system as some other countries, but your financial track record still matters. Without a Danish credit history, you may have fewer options or be offered higher interest rates initially. Some lenders are more flexible than others and specialize in loans for newcomers or international residents.
Common Money Borrowing Options in Denmark
Foreigners living in Denmark have access to a range of loan types, each designed for specific needs — from buying property to managing day-to-day expenses. Below is a quick guide to the most common types of loans you’ll encounter:
Mortgage Loans
Mortgage loans in Denmark are long-term loans used to purchase a home or apartment. They often come with low interest rates but require a substantial down payment and proof of stable income. Foreigners can apply, though permanent residency or long-term status may be expected.
Car Loans
Car loans help you finance the purchase of a vehicle. Car loans can be arranged through banks, dealerships, or online platforms, and terms vary depending on the lender and whether a down payment is made.
Consumer Loans
Often referred to as personal loans, these are unsecured loans used for a wide range of purposes, like travel, furnishing a home, or consolidating debt. They are widely available and can often be applied for online.
Short-Term or Mini Loans
Short-term loans, cash loans, or mini-loans are small loans designed to cover urgent or unexpected expenses. While they’re quick and easy to obtain, they usually come with higher interest rates and shorter repayment terms.
Student Loans
If you’re studying in Denmark, you may qualify for financial support under the SU system. This includes grants and optional student loans. EU/EEA students can sometimes access this support if they meet specific work or residency conditions.
| Loan Type | Purpose | Typical Loan Amount | Repayment Period | Key Features |
|---|---|---|---|---|
| Mortgage Loan | Buying property | DKK 500,000 – 5,000,000+ | 10 – 30 years | Requires collateral; low interest rates; long-term |
| Car Loan | Vehicle purchase | DKK 50,000 – 500,000 | 1 – 10 years | Offered by banks or dealerships; flexible terms |
| Consumer Loan | Personal expenses | DKK 10,000 – 400,000 | 1 – 15 years | No collateral; flexible usage; online application |
| Short-Term Loan | Emergency or small expenses | DKK 1,000 – 20,000 | 1 – 12 months | Fast approval; higher interest; minimal documentation |
| Student Loan | Education-related support | Varies (linked to SU system) | Based on SU rules | May be available to EU/EEA students; tied to study activity and work hours |
What Should Foreigners Consider Before Money Borrowing in Denmark?
Before applying for any loans or money borrowing in Denmark, it’s important to understand the terms and assess your financial situation honestly. Here are a few key things to keep in mind:
Interest Rates: Interest rates can vary widely depending on the loan type, your creditworthiness, and the lender. Always compare annual percentage rates (APR) to understand the total cost of the loan.
Repayment Terms: Make sure the repayment timeline fits your income and monthly budget. Missing payments in Denmark can impact your credit history and result in legal consequences.
Fees and Charges: Some loans come with upfront setup fees, early repayment penalties, or insurance add-ons. Thus, always read the fine print.
Credit Checks and Documentation: Most lenders will assess your credit history in Denmark or your home country. Be prepared to provide documentation such as salary slips, residence permits, and proof of address.
Language and Transparency: Expect loan documents to be in Danish. If you’re unsure about any terms or conditions, seek clarification or help from someone who understands the language, preferably before signing anything.
How to Find the Right Loans & Place for Money Borrowing in Denmark
Finding the right loan as a foreigner doesn’t have to be complicated, especially if you know where to look. Several online platforms have made the process much more transparent and user-friendly.
If you want to quickly compare multiple loan offers, this bank loan comparison tool allows you to view various options side by side, including interest rates, terms, and fees. It’s a practical choice if you want a general overview and a fast application process.
If you’re looking for something more tailored to your financial profile, this bank loan comparison service provides personalised offers based on your situation, sent directly to you. It can be helpful if you’re unsure which options you qualify for.
And if you prefer a more straightforward approach, this cash loan and mini-loan provider offers fast online application, minimal paperwork, and quick transfers, both ideal for urgent or smaller borrowing needs.
These tools and services can save you time, help you avoid expensive mistakes, and ultimately make borrowing in Denmark more accessible—especially if you’re new to the local system.
FAQ About Loans & Money Borrowing in Denmark for Foreigners
Can Foreigners Get Loans in Denmark?
Yes, foreigners can apply for loans in Denmark. However, eligibility often depends on your residency status, income level, credit history in Denmark (if any), and the type of loan you’re applying for. EU/EEA citizens and long-term residents with a CPR number usually have an easier time accessing loans.
What Documents Do I Need to Apply for a Loan in Denmark?
Typically, you’ll need: a valid passport or national ID, a Danish CPR number, proof of income (e.g. payslips or tax returns), proof of residence (rental contract or utility bill), a NemID/MitID for online applications.
What Types of Loans are Available to Foreigners in Denmark?
Foreigners can apply for personal loans, car loans, mortgage loans, short-term loans, mini-loans, and even boat loans. Each has its own conditions and approval requirements.
Do I Need a Danish Bank Account to Get a Loan?
Yes, in most cases, you need a Danish bank account to receive the funds and make repayments.
Are Interest Rates High for Foreigners?
Not necessarily. Your interest rate is more likely to depend on your creditworthiness, employment status, and loan type rather than your nationality. That said, newcomers without Danish credit history may be offered slightly higher rates initially.
Can I Use a Loan Comparison Tool as a Foreigner?
Yes! Tools like the bank loan comparison tool and bank loan comparison service are especially useful for foreigners. They let you view offers side by side or receive personalised suggestions based on your financial profile.
Is it Possible to Apply for a Loan Online?
Absolutely. Many banks and digital lenders in Denmark offer fully online loan applications, often using MitID for verification and signing.
Can I Get a Loan Without a Permanent Job?
It’s harder but not impossible. Some lenders accept temporary or freelance contracts, though you may be offered smaller amounts or higher interest rates.
