Forbrukslån: What You Need to Know

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Consumer loans are personal debts that are borrowed by consumers to use for buying goods and services. Although this term can be used to describe most types of personal loans, it is often used for describing unsecured ones. However, they may also be secured with a borrower’s asset or collateral.

Oftentimes, these kinds of loans are used for a specific purpose and they are provided for a set period. This is referred to as the “term of the loan”. They are usually extended by banks or any other licensed financial institution.

Before a loan can be extended from a lender to the borrower, both parties have to reach an agreement on the terms. Often these terms include the loan amount typically referred to as the principal. It includes the interest rate at which the lender is giving out the loan. It will also include the length of time in which the borrower is supposed to pay back the money to its fullest.

Finally, it may contain the amount to be repaid monthly. This monthly repayment will include a portion of the principal plus the accrued interest for that month. The interest on the loan can be seen as the amount the borrower is paying to buy or have access to it.

Usually, consumer loans come as installment loans. They are dispensed as a lump sum which is then paid back in monthly repayments. You can read more on this here:

What You Can Use Consumer Loans For

Some of the most common uses of consumer loans include:

• Mortgages
• Student or educational loans
• Auto loans
• Personal loans
• Holiday and trips
• Renovations
• Line of credit
• Credit card loans

You can get a consumer loan for most living expenses that you have. These loans vary but they are often utilized for specific purposes. They also vary in amount, interest rates and in the time to fully repay them. You may also use them to grow your business or as a form of refinancing to pay off other debts

Unsecured Consumer Loans and Interest Rates

There are two categories of consumer loans. These are secured and unsecured loans. Secured ones are those that are backed by the borrower’s asset or that have collateral. Unsecured ones on the other hand are not backed by any collateral or assets.

For these reasons, unsecured loans often come with higher interest rates than secured loans. They  also do not easily get approved as the latter. Unsecured ones also have shorter repayment periods. This is often because the risk is greater for the lender in these kind of loans.

Most consumer loans are unsecured but some are secured. Nevertheless, for the unsecured ones, you may still be able to get a low interest rate.

The interest rate is a crucial aspect of consumer loans. The best and cheapest loans come with low interest rates. You should however understand that there are two forms of interest involved. These are the nominal and effective interest rates.

The one you should focus on and be more concerned about is the effective interest rate. This is because it encompasses all the fees and costs associated with the loan. It provides you with the true picture of what taking the loan will cost you.

The nominal interest only shows the interest rate for the loan and does not reveal any associated fees. This can be misleading if that is the only thing you focus on. A lot of consumer loans come with other associated fees. These fees can include fees to make the loan available and service it, early repayment fees and so on.

Finding and Applying For Consumer Loans

You can apply for a consumer loan by approaching a lender. The lender will carry out a credit check to understand your financial situation and see if you have any credit remarks. They are interested in what you need the money for and will also want to know your financial and credit history.

This is why it is crucial to have a high credit score and no payment remarks. The higher your credit score, the more money you have access to and the easier for you to get the loan. Also, you will be able to get it at a lower interest rate.

It is recommended and wise to apply and get offers from different lenders. This will help you to see the various offers, compare them and you can go for the best and most affordable option. However, doing this can be quite stressful and difficult.

An easy way around this is to apply through an agent. By doing this you can get many offers through one application. It is free and with no obligations attached. This is one way you can influence getting a low interest loan from lenders.

Another way to influence getting a low interest rate is by taking out the loan with a co-applicant. This can be your spouse. You will carry the responsibility of repaying the loan together and this gives you more credibility. You also have a greater chance of getting your loan application approved.

You should be careful when applying with a co-borrower. Ensure that it is someone that you trust as you are both legally responsible for repaying the loan. If the other party does not live up to their responsibility, you are held equally liable.

Furthermore, to get a lower interest rate, you can choose to refinance previous debts. You may also go for a secured loan since they typically have lower interest rates than unsecured ones.

Requirements For Getting A Consumer Loan

To get your loan application approved, you need to satisfy some minimum requirements. These requirements include:

Having A Norway Address

To apply for a consumer loan, you are required to have a Norwegian address which is checked in the population register. Most lenders require that you have Norwegian citizenship or at least must have been living and paying tax in Norway for 3 years. However, these conditions can differ from one lender to another but this is the minimum required.

Your Income and Age

Before you can apply for a loan with a bank, you must have a verifiable income. This income amount required varies but at the minimum, you must earn around NOK 120,000 per annum.

Your age is equally important. While the minimum age required is 18 years, most lending institutions however usually require the borrower to be 23 years and over.

Credit Check

As previously mentioned, when you apply for a loan, the lender will perform a credit check to know your financial standing. A credit check is a comprehensive evaluation of your personal finances. It shows your credit history and this helps the bank to decide whether to approve your loan application or not. It will also determine how much the bank can offer you including the interest rate you get.

Payment Remarks

Even if you have satisfied the other conditions above, it is crucial that you do not have any payment remarks. You must also not have any active debt recovery cases. This is often a strict requirement by most banks and lenders.

Processing Time, Repayment Period and How Much You Can Borrow

The processing time for an application after you have accepted an offer is typically within a few hours to a day. All you need to do is accept the offer using your Bank ID.

You have the option of choosing the time for repayment during your application. Usually, the minimum loan term is 1 year and the maximum term for repayment is 15 years.

The amount you can borrow will depend on several factors and this differs from bank to bank. Some lenders offer loans as much as NOK 600,000. This is the highest amount available.

Note however that, it is not automatic that you will get this amount. Each application is evaluated individually. All the different factors discussed above will determine the amount that will be approved as well as the interest rate. You can click here to learn more about all these.


Having access to consumer loans makes life exciting. This is because you are able to finance your needs anytime you want. It is however crucial to understand what is involved and takes steps to get the best deal per time.

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