Loans in Norway: What you need to know 2024 and how to apply

Tobias Sjöström

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In Norway, as in many other countries, loans play an integral part in financial planning and stability. They can help cover various costs – from purchasing a home or a car to financing an education or even starting a business. However, the specifics of the loan types, their terms, the application process, and the fine print can differ significantly from what you’re accustomed to in your home country.

This article aims to clarify the loan scene in Norway. We’ll guide you through the basics, explore the different types of loans available in Norway, and highlight the most relevant details for foreigners living in Norway.

We aim to present the information clearly and concisely, with a touch of financial advice to help you make informed decisions about your financial needs in Norway. 

Get A Loan In Norway

  • Apply for a loan from several banks and choose the cheapest loan
  • With Lendo, The banks are fighting for you
  • Choose the loan that suits you best
  • Free and non-binding loan offers!

Example: NOK 130,000 over 5 years, effective interest 11.19%, cost NOK 37,988, total NOK 167,988.

Apply online here:

Stay with us as we unpack the world of loans in Norway, providing you with the tools you need to navigate your financial journey in this beautiful Nordic nation.

  • Norway offers a range of loans including personal (Forbrukslån), home (Boliglån), student (Studielån), car (Billån), and small business loans (Næringslån).
  • Understanding the basics of loans – principal, interest, APR, and credit score – is crucial before application.
  • Each loan type has unique characteristics, application processes, and requirements.
  • A good credit score and understanding of loan costs are vital for securing favourable loan terms.
  • Reading the fine print and seeking professional advice are recommended for making informed loan decisions.

Understanding the Basics

Before diving into the various types of loans available in Norway, it’s crucial to familiarize yourself with some fundamental financial concepts that can make the process a lot smoother. So, let’s start with the basics.

First off, a loan is a sum of money that a bank or other financial institution lends to you under the agreement that you will repay the amount, plus interest, over a defined period. The key elements in any loan agreement include the principal amount (the money you borrow), interest rate (the cost of borrowing), and the loan term (how long you have to pay back).

The Annual Percentage Rate (APR) is another term you should be aware of. It’s essentially the total cost of borrowing, including the interest rate and any associated fees, expressed as a yearly rate. It provides a clearer picture of how much you’re genuinely paying for the loan.

In Norway, as in most places, your **credit score** is a significant factor when applying for a loan. It represents your creditworthiness based on your history of borrowing and repaying loans. A good credit score can open doors to better loan terms and interest rates, while a poor score may limit your options.

The loan application process generally requires proof of income, identity verification, and consent for a credit check. As a foreigner in Norway, you may also need to provide additional information like your residency status or a Norwegian identification number (D-number or personal number).

Remember: While loans can provide a much-needed financial boost, they also come with the responsibility of repayment. Always ensure you understand the terms of any loan agreement you sign. If in doubt, seek advice from a financial advisor.

Understanding the Basics of Loans in Norway

Types of Loans in Norway

Now that we’ve covered the basics, let’s delve into the specifics of various loan types available in Norway. Each loan serves a different purpose, has its unique characteristics, and may require different application processes, especially for foreigners. Understanding these differences can help you choose the right loan that aligns with your financial needs.

Personal Loans (Forbrukslån)

Personal loans, or Forbrukslån in Norwegian, are unsecured loans you can use for various purposes. Whether you’re planning a wedding, consolidating debt, or funding an unexpected expense, a personal loan can provide the financial assistance you need. As these loans are unsecured, they don’t require collateral, but they typically come with higher interest rates than secured loans due to the increased risk for the lender.

To apply for a personal loan in Norway, you’ll need to provide identification, proof of income, and consent for a credit check. Your credit score will significantly influence the interest rate and terms you’re offered.

Home Loans (Boliglån)

Investing in property is a significant step, and a home loan, or Boliglån, can help you achieve this goal in Norway. Home loans are typically long-term loans that come with lower interest rates compared to personal loans, as they’re secured against your property. 

For foreigners, securing a home loan in Norway might require additional documentation, including proof of residency and a stable income source. It’s also essential to understand that Norwegian law generally requires a 15% down payment of the property’s total price.

Student Loans (Studielån)

Norway is known for its high-quality education, attracting thousands of international students each year. The Norwegian State Educational Loan Fund, Lånekassen, provides student loans (Studielån) and grants to Norwegian and eligible international students.

The application process typically requires proof of admission to a Norwegian educational institution, your financial information, and possibly a guarantor. It’s important to explore all the details with your educational institution or directly with Lånekassen.

Car Loans (Billån)

Whether you’re eyeing a brand-new electric vehicle or a used car, a car loan (Billån) can make it more affordable. Similar to a home loan, a car loan is a type of secured loan where the car serves as the collateral. 

In addition to the standard application requirements, some lenders might require details about the vehicle, such as the make, model, and year. As always, compare offers to ensure you’re getting the best terms for your situation.

Small Business Loans (Næringslån)

If you’re an entrepreneur looking to start or grow your business in Norway, a small business loan (Næringslån) could provide the financial support you need. The terms and requirements for these loans can vary widely, often depending on the nature of your business and your business plan’s quality.

When applying for a small business loan, be prepared to provide a detailed business plan, financial projections, and possibly some form of collateral. It can also be beneficial to seek advice from a financial advisor experienced in Norwegian business financing.

Remember, while each loan type serves a different purpose, the golden rule remains the same: only borrow what you can afford to repay. Make sure to carefully consider your financial situation before making a decision. If in doubt, don’t hesitate to seek professional financial advice. The right guidance can help you navigate Norway’s financial landscape more effectively and confidently.

Tips for Getting a Loan in Norway

Helpful tips

Securing a loan in a foreign country can sometimes be a challenging journey, but it doesn’t have to be a daunting one. With the right approach and knowledge, you can navigate the process smoothly. Here are some tips to help you get the best out of your loan experience in Norway:

  1. Improve Your Credit Score: A good credit score opens doors to more favorable loan terms. Ensure you pay your bills on time, don’t max out your credit cards, and maintain a good mix of credit.
  2. Choose the Right Loan for Your Needs: Different loans serve different purposes. Whether you need a personal loan, home loan, student loan, car loan, or small business loan, it’s crucial to select a loan that aligns with your specific needs and repayment capacity.
  3. Be Aware of the Costs: Loans come with various costs beyond the borrowed amount. Interest rates, processing fees, early repayment penalties – all these add up to the total cost of your loan, expressed as the APR. Always compare these before settling on a loan.
  4. Read the Fine Print: Always read your loan agreement carefully. It contains essential information about your loan’s terms, including the interest rate, repayment schedule, fees, and penalties for late payment. If anything is unclear, ask for clarification.
  5. Get Advice: If you’re unsure about any aspect of taking out a loan in Norway, don’t hesitate to seek professional advice. Financial advisors can help you understand your options and make an informed decision.

Remember, taking out a loan is a significant commitment that impacts your financial future. It’s essential to take your time, do your research, and understand what you’re signing up for. With this information, you’re now equipped to make smart loan choices in Norway. Stay financially savvy!


Embracing life in a new country involves exploring not just the landscape and culture but also its financial system. Understanding the ins and outs of loans in Norway, whether you’re an expat, a long-term tourist, or an international student, can provide you with the financial leverage needed to make the most of your Norwegian experience.

From personal loans (Forbrukslån) for everyday needs, home loans (Boliglån) for securing a cozy haven, student loans (Studielån) for funding an enriching education, car loans (Billån) for exploring the breathtaking Nordic landscapes, to small business loans (Næringslån) for nurturing your entrepreneurial dreams – each loan type serves a distinct purpose to match your unique needs.

But remember, with the freedom of financial support comes the responsibility of repayment. Always ensure you understand the terms and costs of your loan, take steps to maintain a healthy credit score, and choose a loan that aligns with your financial situation and needs.

Useful Resources

Navigating the financial world in a foreign country might seem overwhelming, but thankfully, there are many resources available to assist you on this journey. Here are some resources that can help you understand more about loans in Norway and provide additional guidance:

  1. Norwegian Financial Regulatory Authority (Finanstilsynet): This government body oversees financial markets in Norway. Their website offers a wealth of information and resources about financial regulations, rights, and responsibilities in Norway.
  2. The Norwegian State Educational Loan Fund (Lånekassen): An excellent resource for understanding student loans in Norway. Their website provides comprehensive information about the application process, eligibility, and terms.
  3. Finance Norway (Finans Norge): This industry organization for the financial sector in Norway provides insights and statistics about the country’s financial landscape.
  4. Debtors’ Ombudsman (Gjeldsoffer-Alliansen): A Norwegian NGO that offers advice and assistance to people struggling with debt. They provide valuable resources about managing loans responsibly.
  5. Norwegian Consumer Council (Forbrukerrådet): This organization offers advice and resources on a variety of consumer topics, including loans and financial services.
  6. English-speaking Financial Advisors: You can find English-speaking financial advisors or loan brokers who can guide you through the process of securing a loan in Norway. Websites like or often have lists and recommendations.

Navigating the loan landscape in Norway might seem challenging, but remember, there are plenty of resources available to help you. Don’t hesitate to seek advice and use these resources to your advantage. Making informed decisions is an essential part of managing your finances successfully, especially in a new country. Best of luck with your financial journey in Norway!

ABOUT Tobias Sjöström

Tobias, a veteran of one of Norway's largest banking institutions, is now leveraging his wealth of experience to guide you through the intricacies of the Norway loan market.

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