Checklist before you take out a loan

Tips on what to consider and where you can find the best loan on the market at any given time.

Check whether the advice you get is right for you

Be aware that the bank’s advisors are sellers of the bank’s products, so you should make your own considerations about what you can afford, if you are offered a loan.

When offered a loan, you have the right to be informed of all the terms and conditions. The Norwegian Act on Financial Contracts (Finansavtaleloven) require banks and financial institutions to advise private persons against taking out a loan if their financial situation or anything else suggests it.

Be considerate when taking out a loan

  • Loan for housing, save for consumption.
  • Always check the terms and conditions of several lenders before you take out a loan.
  • The lender is obliged to give you written information about your rights and all other important matters connected to the loan, like nominal interest rates, effective interest rates, what the total cost of the loan will be, and a repayment plan. 
  • Consider the loan’s repayment plan compared with what you are investing in. If, for instance, you are taking out a car loan, try to repay the loan as fast as you can. 
  • Consider how much you will be able to pay each term before you decide. You must be able to afford living with the loan, even if interest rates increase.
  • Adjust the loan agreement to fit your economy. If you can repay the loan faster at a later date, you can change the agreement. 
  • Make yourself familiar with the terms and conditions of the agreement, and do not sign an agreement you do not understand. Ask if you are unsure about something! 

Difference between nominal and effective interest rates

The nominal interest rate is the running face value interest for a given period, normally one year.

The effective interest rate tells you what the loan will cost. This means that all fees (establishment fee and monthly service fees) are included in the cost estimate.

Research where you can get the best loan

The Consumer Council (Forbrukerrådet) provides you with an updated overview of the best loan offers, at all times. Enter your loan information in the form and find the best offer for you.