Rule 1: Correct data and permanent personal number
Start with the basics. Provide your full name, email, phone number, and personal number (known as "Personnummer" in Norway). If you currently have a temporary number (“D-nummer”), you won't be eligible for a loan. Therefore, you will need to apply for a permanent personal number before submitting a cash loan application.
Make sure the information entered is current and correct. Remember, a mistake in this basic data can result in your application being rejected, so always double-check for any typos or errors.
Rule 2: Accurate information about income and employment
Banks usually ask you to provide information about your employment status. Are you employed full-time, part-time, or are you self-employed? Remember that different forms of employment can affect your creditworthiness. Here's an important note: if you're currently on 'permittering' (temporary layoff), you can expect banks to deny you a loan.
In addition, you will need to provide your annual gross and net income, as well as your partner's income (if you're in a relationship and your partner is earning income in Norway), and any other potential sources of income, if you have them.
Important!
Make sure that the income information is accurate and up-to-date. Remember to distinguish between gross amount (including tax) and net amount (the one you receive "in hand"). In fact, your income is one of the crucial factors banks consider when deciding on granting a loan.
Another important thing is to provide realistic income based on averaged total monthly earnings. You should not exaggerate this amount, as the bank can easily verify the income level from recent months. If you are unsure about what income to include, contact a financial expert for free, like us, to avoid making a mistake in this crucial part of the loan application. You can read more about the mistakes made when filling out a loan application here.
Rule 3: Accurate Information about expenses
This is often an overlooked aspect of the loan application that can significantly impact the bank's decision. You will need to provide information about your regular expenses, such as housing costs or alimony paid in Norway. It's essential to note that underestimating your expenses could lead to future issues, as the bank will evaluate your ability to repay the loan based on this data.
Rule 4: Detailed Information about existing debts
If you already have loans, be sure to provide information about the costs associated with them. This information should include the balance of debt and the monthly installment amount. Concealing or downplaying the value of existing debts can result in rejection of the application, even at a later stage of verification by the bank.
Remember to enter the amount of these debts, not their number, in the appropriate fields of the form: "Car loan (including boat)" and "Other consumer loans and cards". For example, if you have 2 cash loans: one for 60 000 kr and the second for 40 000 kr, you should enter a total amount of 100 000 kr instead of the number of loans: 2. This can't be an approximate amount; it must be the exact amount of debts. To facilitate this, you can check it by logging in for free to GjeldsMonitor.
If you plan to refinance some of your current debts, you should enter the amount you want to refinance in the field "How much do you want to refinance?" This should be part of your debt, for example, 30 000 from our aforementioned 100 000 cash loan. However, the total loan amount you are applying for may be higher than the refinancing amount, depending on your needs.
Rule 5: We do not estimate the loan amount "by eye"
At the final stage of filling out the application, you will have to provide details about the loan you are applying for: how much money you need to borrow, for what period, and what you intend to use the money for. Remember to specify exact amounts. The lack of precise information on this matter may raise doubts among financial institutions regarding your intention to repay the loan
Summary
We hope our guide will help you avoid typical mistakes and increase your chances of getting a loan. Remember, you can always reach out to our experts for help.
As a reminder, the basic conditions you must meet to apply for a consumer loan in Norway are:
- documented, steady annual income of at least 220 000 NOK,
- age above 23 years,
- permanent personal number,
- current residential address in Norway.
By meeting the above conditions, you can apply for a consumer loan or refinancing in the amount of 25 000 to 600 000 NOK.