Loan Application Guide for Foreigners in Denmark


People who live in Denmark but are not permanent residents there are eligible to apply for a loan should they ever need one, in the first place.

The process is similar to that Danish citizens have to go through in order to apply for a loan, with a few extra steps. But don’t worry, as the process isn’t difficult at all. 

That said, it’s best that you familiarize yourself with the process itself, to begin with. This will help you save time and you won’t run around collecting documents you didn’t know you needed.

You can also use reliable sources, such as the Danish tjek-laan to help you familiarize yourself with different lenders, loans, terms and other conditions that are involved in the loan application process in Denmark. 

After all, research helps you avoid any potential mistakes like applying for a wrong loan, for example, and also helps you find the best type of loan with the most favourable conditions that will suit your current financial needs.

So with that in mind, here is a loan application guide for foreigners living and working in Denmark. 

Make sure you have the necessary documentation

As mentioned before, the very process of applying for a loan in Denmark as a foreigner is pretty much the same as the one for Danish citizens.

The only difference is that you will have to provide documentation that allows you to reside or work in Denmark legally. Therefore, the process is only slightly different for foreigners than it is for Danish citizens. 

Other than that you will have to provide NemID or MitID, which is basically an electronic personal identification system used to communicate with Denmark’s public sector.

In most cases, this system includes your personal information and digital signature so you won’t have to bother with any official paperwork. 

As for any specific requirements, that may depend on the lender and the type of loan you’re applying for. That said, some lenders may require from you to have a Danish bank account.

That’s why you should research all the requirements before you apply for a loan in Denmark as a foreigner. 

Decide on the type of loan you need

Denmark has a plethora of different loans designed for specific purposes and needs. You should take the time to research different types of loans available to you in Denmark so that you can determine which loan is most suited for your current needs. 

A good example is a mini loan that can help you cover unexpected bill payments or other smaller expenses without going into any serious debt.

Moreover, if you need a vehicle for work, you can apply for a car loan that’s designed exactly for that purpose. 

So you see, there are a variety of loans for different situations and needs, which is why you need to familiarize yourself with all of them.

This will help you choose the right type of loan and also help you find an ideal lender for that particular type of loan. 

Choose the best lender for your needs

Denmark is home to many different lenders. Choosing the right one can be a daunting task. Lenders differ based on the loan condition they provide, which can include the amount of money you can get for a particular loan, interest rate, period for which you have to repay the loan and so on. 

So the key is to find a lender that will give you the most favourable conditions for the loan you need. And since there are so many lenders, to begin with, you’ll have to keep researching until you find the right one. 

Moreover, don’t hesitate to reach out to different lenders and ask for quotes. You can also try to negotiate better terms as many lenders would prefer to have you as their client instead of seeing you going to their competitors. 

Also, don’t hesitate to ask your friends or acquaintances for recommendations. Perhaps they’ve taken a loan in the past and can, therefore, recommend you to a good lender or a bank.

This will certainly help you narrow down your search and perhaps even help you save some time in the process.