How can you find Norway’s cheapest loan?

A loan is essentially a product, just like the products you buy in a supermarket. If you want to take out a loan, you have to pay for it. That is why it is important, as a customer, to get the lowest possible price. The pricing of loan products differs quite a lot from how other products are priced. For example, when an electronics retailer advertises a fridge for sale, that price applies to all customers. The retailer cannot set individual prices for each person who walks through the door. When you buy the fridge in cash, the same rules apply to everyone. Your money is worth just as much as the next customer’s.

Unfortunately, this is not how the loan market works. If you and your neighbour apply for exactly the same loan, even with the same bank, it is highly likely that you will be offered different interest terms.

When looking for a loan, you should try to get the best possible terms based on what suits your financial situation. Before taking out a loan, it helps to have some understanding of how banks and lenders think. One of the most basic questions is simply:

What is a loan?

A loan is generally defined as follows: a loan is an agreement between two parties. One party lends an item or an amount of money to the other. The party that lends is often referred to as the lender or creditor in official documents. The person who borrows, for example an amount of money, is referred to as the borrower or debtor. In the case of financial loans, the borrower normally agrees to repay the loan amount to the lender at a specified interest rate and within a set period of time.

Good advice before applying for a loan

Taking out a loan online is not something you should take lightly. It is important to explore your options, as there are many factors to consider. Borrowing money online has never been easier, but it can also become expensive. That latest smartphone may end up costing far more than expected if it is financed with a loan.

How large a loan can I be approved for?

It is not always easy to give a clear answer to this question. There are many factors a lender considers before making a loan offer.

There is no equal treatment when it comes to loan approval. How much you can be approved for depends on the lender’s assessment of your financial situation and your ability to repay. In simple terms, this means having a stable income that allows you to pay interest and instalments on time.

Loans in relation to income, what should you consider?

In this assessment, the lender places particular emphasis on your income and how much debt you already have. There are also statistical factors linked to borrowers who are considered more or less reliable. These include your age, where in the country you live, how often you move, and whether you have a variable income. There is also one more thing the lender looks at. Could your finances cope with a possible interest rate increase? This is not something you as a borrower can control. Interest rate rises, and cuts for that matter, are affected by the global financial situation. Since interest rates have been historically low in recent years, many financial experts expect them to rise by between 2 and 2.5% over the next few years. No one knows for certain how quickly that increase will happen. It depends on several factors that are still uncertain, but it is fairly likely that rates will rise.

That is why it is a good idea to assess your own finances before submitting a loan application. Think carefully about how much you actually need to borrow. After all, you will have less disposable income while repaying the loan. Economists often refer to this as your disposable amount. This means the amount you have available each month after your fixed expenses have been paid. Could your finances handle a possible interest rate increase of at least 1.5%? If the answer is yes, there is a good chance that your loan application will be approved.

The authorities also place restrictions on lenders. These are set out in the consumer loan regulations issued by the Norwegian Financial Supervisory Authority. The most important rule is this: a loan should not be granted if, after taking out that loan, the borrower’s total debt exceeds five times the borrower’s annual income. However, exceptions may be made if the loan is for refinancing existing debt.

Nanofinans helps you find the highest loan amount you may be able to get by forwarding your enquiry to several lenders. Once the offers are on the table, you can compare them and decide how much you want to borrow within the limits offered.

How quickly do you need the money?

It is a fair question. In principle, we would advise against borrowing money in a rush. Taking out a loan creates debt, and you should spend some time considering the consequences. You should review your financial situation and think through how you plan to repay the loan. You may have to cut back on some of your current expenses. Will taking out a loan mean sacrifices in other areas? In any case, borrowing should never happen on impulse.

That said, we understand that sometimes people end up in difficult situations. The fridge breaks down or the car needs repairs. These are things you rely on in everyday life. It can create major problems if you cannot arrange the financing quickly. In situations like that, it is understandable that you may need to borrow money fast.

For smaller loan amounts, Nanofinans has a simplified process. The application is quick to complete, and you will receive a response within a short time.

A little about loans without collateral

When it comes to borrowing money without collateral, the lender has little more than trust to rely on. Trust that you, as the borrower, will repay the amount. With an unsecured loan, the lender does not take security over any of your assets. The lender is taking a risk, particularly the risk that your ability to repay may change, especially in a negative way. For that reason, the institution will not grant a larger loan than it feels reasonably confident you can repay. personal loan is one example of this type of loan.

A little about loans with collateral

When we talk about loans with collateral, we are mainly talking about mortgages, but it can also refer to loans secured against a car, boat or other real property.

Loans with collateral, meaning security in the asset you are borrowing money for, will always have better terms than loans without collateral, which are normally called personal loans. If you are able to provide security for a loan, you should usually do so. If you own a home and have already paid off part of it, it is always worth asking your own bank or other lenders whether you may be able to borrow against it.

Read more about loans for a home, car or boat at nanofinans.no.

Borrowing money, advantages and disadvantages

We all want to keep our personal finances in good order, but that is not always easy. An unexpected bill lands on the doormat. Do you have the money to pay it on time? Perhaps both the washing machine and the fridge stop working at the same time.

For many people, applying for a loan online has become a solution to this kind of problem. It is simple for both you and the lenders.

Today, you can use your smartphone or computer to take out a loan relatively quickly. You do not need to appear in person at the bank, and in some cases you may receive the money very quickly. So, do you dream of the latest smartphone or a holiday abroad? Did an annoying bill arrive in the post today?

If so, an online loan may be a suitable option. All you need to do is complete a loan application, and you will receive a response within a short time, and hopefully the money in your account soon afterwards.

Below you will find some of the main advantages and disadvantages of taking out a loan online.

Borrowing money, advantages

• Quick and easy. Today, everything is available online. This makes it easier to find information about the lender so that you can choose the right one based on your needs the first time you apply. The application process is short, and you may receive the money shortly after approval.
• Convenient. You can apply for a loan from your own sofa instead of going to the bank and sitting through lengthy meetings with an adviser.
• Use the money for whatever you want. Borrowing money online often means that you decide what you want to use the money for. A holiday, home improvements, the latest smartphone, the lender usually does not ask questions about your plans for the money.
• Loans without collateral. When applying for loans online, there is often no requirement to provide collateral. The lender mainly looks at your credit assessment. If that is positive, you may be able to borrow.
• Easier approval. In many cases, the requirements set by online lenders are lower than those set by banks. That is one reason why it can be easier to apply online than through a traditional bank.

Borrowing money, disadvantages

• If you do not pay close attention and read all the small print, borrowing money online can become expensive. Many lenders increase the APR through fees and additional charges.
• Interest rates on loans taken out online are often significantly higher than those on equivalent loans from a bank. This is largely because no collateral is required, so the lender’s main protection lies in the interest you pay.
• Although borrowing money online may be more expensive than, for example, a bank loan, many people cannot borrow from a bank because banks require collateral. That is why some applications rejected by banks may instead be approved by online lenders.

What is APR?

APR stands for annual percentage rate. It is the total yearly cost of your loan, expressed as a percentage of the total credit amount. When you take out a loan, this is covered by a loan agreement between you and the lender and regulated by credit agreement rules.

The law requires the APR for a personal loan to be clearly shown together with the other costs. The costs included in the APR consist of both one-off charges and ongoing costs. One-off costs may include arrangement fees, processing fees, fixed registration charges, variable registration charges and document fees.

Ongoing costs linked to the APR may include monthly or annual account fees, administration fees and interest. Hopefully, this gives you a clearer understanding of what APR means, so that you can feel more confident the next time you take out a loan.

You should also bear in mind that although fast loans often come with a significantly higher interest rate than a typical personal loan, they are generally intended to be repaid quickly, usually within a month or two. Otherwise, the cost can become extremely high. Typical loan amounts for minute loans therefore range from NOK 500 to NOK 10,000. If you need to borrow more than that, you should consider another type of loan.

Check the APR on small loans

When you need to borrow money quickly and cheaply, it is important not just to look at the interest rate shown on the front page. You should read the small print carefully, especially the parts that relate to the APR. APR includes all the costs of the loan, and if it is high, the loan is expensive. A low APR will usually indicate a cheaper loan, although that does not automatically mean it is the best option.

Costs linked to a loan can include administration fees and monthly account fees. In many cases, small loans such as quick loans and SMS loans come with these types of charges. That is why it is always important to read the small print carefully before taking out a loan, especially if you are considering what is commonly known as a small loan.

How can you get the best terms on your loan?

A loan is a financial commitment. When you take one out, the lender expects to be repaid. Even if the loan is necessary, it can quickly become more expensive than it needs to be. There are a few factors you should look at before signing the agreement:

• Repayment period – Extending the repayment period does not necessarily make the loan cheaper. It means lower monthly instalments. For people on a tighter budget, this may make the loan easier to manage. It can be better than trying to repay the loan over a short period and ending up with reminder fees because you cannot pay on time.

• Co-borrower – If you live with your partner or are married, it may be easier to repay the loan together. In that case, a lender may be more willing to offer a lower rate. It gives the lender additional security, and two people sharing the repayments can make the loan easier to manage.

• Debt consolidation loan – If you already have several loans, it is often a good idea to combine them into one. This may save you money and improve your financial situation. One reason is that a larger consolidated loan may sometimes come with a lower interest rate.

Borrow money online

Digitalisation means that more and more services are now available online. This makes applying for a loan quicker and easier for both parties. You get the same product and much the same service, but in a more convenient way. One of the biggest advantages is that it is often not necessary to provide collateral in your home or other assets in order to be approved.

Before taking out a loan online, the best advice nanofinans.no can give you is to first look into the options available. There are many types of loans, each designed for a particular purpose. You may need a car loan, or a loan where you do not need to provide security. Which type suits you best depends entirely on your financial situation.

That is why it is a good idea to begin by getting a clear overview of which lenders are in the market and what they can offer you. Borrow money with the help of nanofinans.no. The most attractive loan options are listed at the top. Keep reading and we will give you the details you need.

Alternative loans you can apply for

There are many different loan options you can apply for online. It is often difficult to find the best and cheapest one. You may be looking at small loans, car loans and more. The selection is wide, which is why it makes sense to research the market thoroughly before deciding which type of loan suits you best.

By using nanofinans.no’s overview of some of the best loan companies in Norway, shown above, you can compare the available options. These are based on important factors such as:

• requirements
• terms
• conditions
• loan amount
• repayment period
• monthly repayment
• establishment costs

Car loans

A car loan , as the name suggests, is intended for buying a car. If you need a car and do not have the money to pay for it outright, a car loan may be the best option. This is often cheaper than using a small loan, and in many cases you can decide whether you want the funds paid out or used directly for the purchase. Most car loan providers specialise in vehicle finance and have a lot of experience in this area. Nanofinans also has a dedicated calculator for car loans.

When taking out a car loan, it is a good idea to get more than one offer. You should look at the total annual cost of the loan, the APR. If two different loans have the same APR, the one with the lower arrangement costs will usually be preferable, even if the nominal rate is higher.

Small loans

Small loans are probably among the most expensive loans on the market, since the lender often has no other security than the interest you pay. Even so, they can be a good solution if you repay the loan quickly. Lower arrangement costs and faster payouts make small loans attractive to many people. With some lenders, you may have the money in your account within 30 minutes of approval.

This is an incredibly fast and simple process when it comes to quick digital loans. You no longer need to go to the bank, speak to an adviser and provide collateral for the loan.

You will usually only be approved if the lender believes it is safe to lend to you. In other words, the lender must believe that your finances can cope with the loan. It is in everyone’s interest that you take out the right loan and repay it without problems.

So, if you need money quickly, for example to pay an important bill, and you know you can repay it when you get paid, this type of loan may be a suitable solution. Below, we look at some options that fall into the small loan category.

Small loans, borrow money quickly

As a borrower, you have never had as many small loan options as you do today. This gives you more flexibility in how your loan is structured. One of the most useful things you can do is consider the factors that may affect your finances.

Interest on small loans

Is it more expensive to borrow a small amount than a large one? Does the repayment period matter most? In many cases, small and fast loans are more expensive than larger loan amounts repaid over a longer period. Many small loan providers highlight the nominal interest rate, which may look low. That can be misleading, because it refers only to the lender’s basic interest charge. What really matters is the APR, because that shows the full cost of borrowing.

Applying for a small loan

In most cases, a small loan can be applied for in three simple steps:

1. Complete and submit the loan application
2. Get the application approved and sign it
3. Receive the money

Quick loans

Quick loans are one of several terms used for small, fast loans that are designed for situations where you need access to money quickly.

In recent years, so-called quick loans have become popular in Norway. This type of loan gives you access to money straight away, which may help in an unexpected situation.

In practice, this means money you can borrow quickly, sometimes in just a minute or two, usually with minimal security requirements. You pay for the fast processing and the lack of collateral in the form of higher interest rates.

Coverage of this type of loan in programmes such as Luksusfellen has contributed to giving it a poor reputation.

SMS loans

You can also borrow money through what is commonly known as an SMS loan. As the name suggests, this originally referred to loans applied for by text message, or at least that was how it worked in the beginning. Today, however, an SMS loan is generally understood as a small loan that is processed very quickly, often with the money paid out within a short time. It no longer matters whether you apply by mobile phone or computer.

You will quickly discover that these loans often come at a high cost. This may be in the form of a high interest rate or an extremely short repayment period. The cost can usually be assessed before you take out the loan. In any case, it is always best to repay an SMS loan as quickly as possible.

Apply for a consolidation loan for refinancing

If you have many loans, it may be possible to combine them into one larger loan with one creditor. This can reduce your costs and make your debt situation easier to manage. In other words, you may be able to consolidate your existing loans or refinance them. If you already have several loans, borrowing more money simply to pay bills is rarely a good idea.

What is refinancing?

Refinancing means taking out a new loan to replace old debt. It is perhaps easiest to explain with an example:

You took out a loan one year ago with lender A at a fixed interest rate. Now you want to see whether you can get a lower rate elsewhere and save money. You therefore go to lender B, which is willing to offer you a lower rate. Lender B then repays the full debt to lender A, so that from then on you only continue your monthly repayments to lender B. You save money because less of each payment goes towards interest. It may also mean that you repay the loan faster, because more of your monthly instalment goes towards the principal.

There are many lenders in the market, and it is always worth checking your options. In principle, most types of loans can be refinanced. If you manage to secure a lower rate through refinancing, that is usually a win.

Can you use a mortgage for refinancing?

The short answer is yes. First, you need to get an overview of how much debt you have. Then you contact a property valuer to get an updated valuation of your home. This is often referred to as the property appraisal. The important point is this: if the amount you want to refinance is less than 60% of your property’s value, there is generally nothing to prevent the bank from allowing you to roll your unsecured debt into your mortgage.

What does it cost to borrow money?

So what does it cost to borrow money? The answer depends mainly on your financial situation and the type of loan you want. It also depends on how much you borrow, the repayment period and the interest rate you are offered. In most cases, the APR, fees and arrangement charges will have the greatest effect on the total cost. The price of a loan can vary significantly depending on these factors.

If you simply take the first loan you come across, you may end up with a very expensive deal. That is why we recommend applying in more than one place so that you can compare and choose the cheapest option.

Borrowing money without collateral

When we talk about loans without collateral, we are often talking about smaller amounts that are paid out quickly. There are usually no major security requirements attached to this type of loan. In other words, you do not need to pledge your car or home in order to be approved. This can be an attractive option if you need money quickly. If you choose this type of loan, you should be aware of one important point: in most cases, an unsecured loan comes with a higher interest rate because interest is the lender’s main protection if the money is not repaid.

If you choose this type of loan, you will usually need to show that you have a stable income and are able to repay it. An unsecured loan may well be worth considering if you need to borrow money. For most people, however, a secured loan will still be cheaper if that option is available.

Borrow money interest-free

An interest-free loan is something you may have to search a long time for, especially if you already have several loans. That said, it is not completely impossible. In some cases, lenders offer your first loan interest-free. This is of course intended to attract new customers and create awareness of the company and its products.

In most cases, this will apply to a loan of around NOK 10,000 or less. Your credit will still be checked to make sure you are able to manage the repayment. An interest-free loan is therefore a real possibility and something worth being aware of if you are borrowing for the first time. In other words, borrowing money free of charge is not always just wishful thinking. In some cases, it may actually be possible if you have a strong credit profile and a sound personal financial situation.

Loans with low interest rates, what affects the rate?

It is not always easy to work out the total borrowing cost of a loan. The reason is that the interest rate depends on several factors, such as:

• Your personal finances
• The global financial situation
• The type of loan you are applying for
• Your credit assessment

If this is the first time you are applying for a loan online, a thorough credit assessment will usually be carried out. This is an evaluation of your personal finances prepared by the lending institution. A good credit assessment makes it easier to apply online. Lenders have made the online loan application process very simple.

Credit assessment, what is it?

The lender, whether it is an online loan company or a bank, will in most cases carry out what is known as a credit check or credit assessment. A credit assessment is an evaluation of your finances and your ability to manage a loan. In other words, can you pay the instalments when they fall due, and can you pay them on time?

The following points are assessed:

• Disposable income
• Ability to pay
• Assets
• Other loans

It is also checked whether you have any payment remarks or active debt collection cases. If you do, your application will in most cases be rejected. At the same time, it should be mentioned that not every lender carries out a full credit assessment. That means that even if you have a payment remark, it may still be possible to get approved in some cases.

An important part of the assessment is whether you have enough disposable income to manage the loan.

You can strengthen your financial position by getting better control of your finances. One good way to do that is by making a budget. A budget gives you an overview of all your income and expenses. That way, you can see how much money you have left each month after your fixed costs have been paid.

Borrow money quickly and change your mind within 14 days

It is worth remembering that under credit agreement rules, you always have a 14-day right of withdrawal on your loan. This 14-day period applies from the day you sign the agreement. You should also receive information about this right before signing.

If you have not received that information, the withdrawal period only starts from the day you do receive it. Borrowing money quickly is something you should take seriously, but a 14-day right of withdrawal makes it easier to get out of a loan that turns out to be a poor decision.

Minute loans

You need money, and you need it quickly. Perhaps your loan application has been rejected by the bank, or a standard personal loan application online was declined, and you urgently need to cover an unexpected expense. Things may look difficult. What should you do? What options do you have? The good news is that there may still be a way forward, although it will usually cost more than taking out a more conventional loan from a bank or online lender.

Minimum requirements to get a minute loan

Even though it is relatively easy to take out a quick loan, there are still certain things that should be in place to improve your chances of approval. The exact requirements vary between lenders, but most of them require that:

• You are at least 18 years old
• You have a regular income
• You have no payment remarks or active debt collection cases
• You have a permanent address and have lived in Norway for at least 3 years
• You meet the lender’s credit check requirements

How much interest do I have to pay?

Most small loans come with high interest rates, especially when the loan amount is larger or the repayment period is longer. Many lenders advertise a low interest rate, which can be misleading because it refers to the nominal rate rather than the full cost. What you should really look at is the APR.

As an emergency solution, a minute loan may help you avoid reminder fees or other urgent payment issues. In that sense, the relatively high interest cost may sometimes be worth it. At least it solves the immediate problem. Just remember to repay it quickly. nanofinans.no shows you how to get a quick loan in minutes.

Fast minute loans, as an emergency solution

Sometimes in life, things happen that are beyond your control and require you to get hold of money quickly in order to pay an unexpected expense. Many people find it difficult to arrange this immediately because banks usually require collateral, and as we all know, these things take time. That is often the real issue, time.

There is still a way out. In some cases, you may be able to solve the problem almost straight away. The downside is that this usually comes at a price. You should be prepared to pay relatively high interest rates for a fast loan of this kind. If you repay it quickly, it can in many cases be a workable solution. But first of all, what exactly is a minute loan and how does it work?

Fast processing time for loan applications

There is often very little time between submitting your application and receiving the money in your account. Usually, the lender carries out a credit check to see whether you have any payment remarks or active debt collection cases registered against you. The entire application process takes place on the lender’s website, and as with other types of personal loans, no one usually interferes with what you plan to use the money for.

Submit several loan applications, the market is yours!

Since the first offer is rarely the very best one, it is often a good idea to submit applications to several lenders at the same time. Applying for a loan online is also 100% non-binding, so you have nothing to lose. If you are rejected in one place, you can simply try another.

If your application is approved, you sign with BankID and the money will usually be transferred quickly to your account. If you have BankID on your mobile, the process can be even faster.

How to assess the offers

You can start by looking at the bank or finance company’s own marketing. The rate they show is usually their best rate. They may also show a rate range, for example that interest may vary from 4 to 7%. For personal loans, rates often range from 7 to 25%. You will not get a specific rate offer until you have applied and been approved.

Another thing often included in marketing is a loan example, such as: if you borrow NOK 15,000 at 10% interest over five years, you must pay x kroner per month. This corresponds to an APR of y%. The problem with this type of example is that you do not know whether you will actually be approved at 10%, and the repayment period used in the example may not fit your own finances.

While it is easy to compare the price of fridges, at least within the same brand, the same cannot be said for loans. To compare properly, you often need to apply for the same type of loan in several places and wait for actual offers before you can assess them properly.

Completing application forms, sending documentation and communicating with several lenders can be time-consuming. Let Nanofinans do the hard work for you. On your behalf, we will forward your application to a number of banks and lending institutions we work with. Then you can compare the replies and offers you receive and choose the cheapest loan.

Personal loan, what is it?

A personal loan is a type of loan that is not tied to a specific purchase. You do not need to provide collateral in order to take one out. It can be used for whatever you want. That is part of the idea behind it. It is quite common to use a personal loan for things like home improvements. The easiest way to get approved is often to apply online. Nanofinans has a dedicated calculator for personal loans. That means banks do not ask what you need the money for. Many lenders offer personal loans, and many offer up to NOK 800,000. Because so many providers offer the same type of product, banks compete to win you as a customer. If you submit a personal loan application through Nanofinans, we forward it to potential lenders for you. All you need to do is choose the offer that suits you best.

Personal loan or credit card?

Credit cards and personal loans overlap to some extent because both provide unsecured credit. However, there are some important differences, which mean they should be used in different ways.

Perhaps the most important point is that credit cards normally have a higher interest rate than even the most expensive personal loans. Having accumulated debt on one or more credit cards is generally a worse financial position than owing the same amount on a single personal loan.

Credit cards do still have some advantages. Most offer an interest-free period until the monthly due date, which may be up to 45 days. If you pay off the balance every month, it may cost you little more than the card fees.

Many people use credit cards to book travel because they often include travel insurance, or to pay for online shopping.

The general rule is therefore this: if you are able to repay what you spend on the card each month, a credit card may be more beneficial than taking out a loan. If, on the other hand, your credit card balance keeps growing, or you need more credit than you can repay by the next due date, you should instead consider a personal loan.

If you already have one or more credit cards with outstanding balances, you should consider consolidating that debt into one loan. Check the offers from Nanofinans.

Find the cheapest loan with nanofinans.no

We hope you now feel better prepared in your search for the best and cheapest loan for your personal finances.

If you have any questions, do not hesitate to contact our customer service. You can now go back to the top of this page and begin your search among the lenders listed in our table of Norway’s cheapest online loans.

Good luck!