Joseph B. Hash

There are many reasons why people, in Denmark, take loans. But, whatever the reason is, it is a known fact that taking loans and dealing with banks is not an easy task. Even for a well-educated person, understanding the mortgage system is not easy. On top of that, confusing and enigmatic terms and conditions of the banks make it even harder.

In Denmark, if you are looking for a place to get loans, one of the best companies operating as SME lenders is Capitalbox. This can be the best choice for business loans for start-ups and long-serving businesses. You can find more options after evaluating the customers’ opinions on Danskeanmeldelser about business financing. You can also search for other companies on this platform. Private companies are better than banks for seeking loans. The reason is that you need to have a fixed income and a stable economy, to apply for a loan from a bank. But even before asking for a loan from a private company, here are a few laws that you must know:

  • Limits on APR and Costs

According to laws in Denmark, consumer credit agreements with APRs transcending 35% are proscribed. This means that a consumer loans company cannot impose costs that exceed the specified cap of 35%. Infringement of this rule will result in a fine and imprisonment for up to four months on the gross or repeated violation. This law doesn’t apply to the credit agreements concerning real property.

  • Marketing Proscription

A marketing prescription is imposed which states that companies providing loans with APRs exceeding 25% may not promote any consumer loans. Accordingly, if a consumer loans company provides even one consumer credit agreement with an APR of 25% or more, the company will not be permitted to promote any type of consumer credit facility, despite the Annual Percentage Rate.

The marketing prohibition does not apply to credit agreements concerning real property. Violation of the marketing prohibition is punishable by a fine. The punishment will apply to the company that provides consumers with credit facilities that are connected to gambling and gambling providers. Gambling providers shall not be charged.

  • Requirement of Good Business

Apart from caps on APR and marketing proscription, Consumer loan companies are also required to comply with good business practices corresponding to requirements for the rest of the business field. Consequently, the requirement is that the consumer loan companies must be operated following good and trustworthy business practices in this area. Consumer loan companies are also compelled to identify the target group for their lending products.


Even though it is almost possible for everyone in Denmark to take on a loan in only a few minutes, you must make sure that you can obey the loan terms. If you do not pay off your loan, the loan company is in its right to add on extra fees which is why even a very economical or small loan might become relatively expensive. Therefore, you must consider your budget and make sure it is realistic for you to pay every month.

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