If you’re starting to settle into everyday life in Copenhagen and the initial excitement of arriving in this one-of-a-kind city is starting to be overshadowed by the routines of daily life, you’re not alone. It’s a point that everyone eventually reaches and that’s a natural part of being an expat.

But with this often new challenges arise. There are many great things about living and working in Copenhagen, but dealing with paperwork and paperwork isn’t one of them. Even though enormous progress has been made to make it easier for people to settle in the city, everything is still not clear.

One of the things you don’t often talk about when getting started in a new country is how mundane and regular things work in practice. One of those things are loans. If you have moved to Copenhagen and Denmark from a Scandinavian country, you will find many similarities. In this text, we’ll provide a crash course in how loans work in Denmark, as well as practical tips that can help you get loan approval when you need it. We are also going to talk about quick loans, something that has grown in popularity

Here’s what you need to qualify for a loan in Denmark

As with most loans in other countries, you must be a permanent resident of Denmark. This is not a problem if you are a citizen of an EU country, but it can cause problems if you are still in the process of orienting yourself and waiting for a decision from the various government agencies.

You must also have a permanent address as well as a CPR number. Your CPR number is your key to being able to fully participate in Danish society and it is something that will open a number of doors for you. At least on paper, you don’t need to be employed by a Danish company, but that certainly won’t diminish your chances. Overall, the items you need to be able to provide to your loan-issuing institution do not differ too much from standard banking practices around the world.

Take out a loan from a bank

If you have not started the process of obtaining a bank account in Denmark, but it is very wise for you to start this process immediately. Opening an account with a major Danish bank is usually free, but the waiting times and paperwork involved can be enormous. Therefore, it is wise for you to start the application process quickly, even if you do not need to take out a loan in the foreseeable future. Having been a client for a while will increase your chances of getting loan approval.

Therefore, it is also wise to start debiting your salary directly from your Danish account. This will show the bank that you are a serious customer and not just someone using the bank to take out a loan. Banks are looking for assurances that you will repay your loan on time and having established a relationship before you apply will help you get approved.

What can a loan be taken out for?

Again, there is not much different here compared to other countries. People take out loans for all sorts of different things, but the two main areas are bigger expenses like buying a car and taking out a mortgage to buy some house. Deposits in Copenhagen have also reached astronomical proportions, leading many tenants to take out a loan in order to move into an apartment.

But there are also different types of loans that have become very popular in Scandinavian countries over the past decade. We’ll explain what they are in the next paragraph, and while these loans may not be right for your current situation, it’s always wise to have a brief understanding of them.

What is a forbrukslån?

A forbrukslån or quick loan, as translated into English, is, as the name suggests, a form of loan (or lån in Danish, Norwegian and Swedish) for which it is very easy to obtain approval and which is often reimbursed in minutes. This has become very popular in Scandinavian countries as it is much easier to get approval for these loans. They can be a powerful tool when used correctly, but they often come with high interest rates. This may be something you can use, but we cannot stress the importance of doing the math before taking out these types of loans. Visit forbrukslån.no to find out more about forbrukslån.


Overall, there isn’t too much of a difference to taking out a loan in the rest of the world. The things you need to be vary though. Make sure you are up to date with settling in and getting all the various documents approved and try to get a Danish bank account approved as soon as possible. Copenhagen is an expensive city and taking out a loan to be able to finance various things is one of the ways to improve one’s living situation.

As with everything in Danish society, things get much easier once you’re in the system. It is not necessary to be a citizen to take out a loan, but having a permanent base and some form of income is necessary. Remember to do the math and budget accordingly.

As always when taking out a loan, it is your own responsibility to ensure that you understand everything the loan encompasses. I hope this text has been able to clarify how Danish loans work and what you need to keep in mind when considering taking out a loan.