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Why Take Personal Loans In Norway Besides Refinancing

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Unsecured Personal loans in Norway are growing in popularity for numerous reasons. Whether people are taking the opportunity to refinance debt into a single payment, use the money to enjoy a much-needed personal vacation, perhaps do some renovations to increase value and add some curb appeal to the home. There are many things with which extra funds can help.

For Norwegians interested in a loan, you should obtain quotes from varied trusted lenders using sites like You have to be 18 years of age+ with no less than NOK 120,000 per year. The applicant needs to have paid taxes in Norway for three+ years.

Why Take A Personal Loan In Norway Aside From The Benefit Of (Refinansiering) Refinancing

With unsecured personal loans, borrowers can use the funds for whatever purpose they choose. Lenders might ask the question regarding what you intend for the money, but there shouldn’t be a denial regardless of the choice. Most people in Norway have relatively practical reasons for taking out a loan.

Some choose to make needed renovations on homes as a way to add resale value. In contrast, others hope to relieve some debt with refinancing in an effort to consolidate some of their financial responsibility. In some cases, individuals take vacations, including honeymooners or families overdue for a trip to bond.

According to the “Norwegian Institute of Consumer’s Research’ in a study conducted by “SIFO,” there is some indication of where more Norwegians choose to use the funds. Let’s take a look.

(Refinansiering) Refinancing

Among the most common reasons for unsecured personal loans in Norway is to consolidate other debts. Many individuals use the money to transfer debt from credit cards, other loans, and smaller debts into one single payment, which is typically much less expensive and more straightforward in managing the monthly bill cycle.

The possibility is there for saving thousands of kroner (NOK - Norwegian Krone - currency) each month with a refinancing loan. Still, you can pay higher amounts and get the debt paid faster, allowing you to be completely debt-free in a much quicker time frame.

Purchasing A Pre-owned Vehicle

New cars are usually financed through the dealer, taking loans to buy used cars, which are often done privately. You can purchase some pre-owned vehicles through a car dealer, but people will use a private platform for a large majority.

Invest In Home Renovations

Homeowners, especially in Norway, take great responsibility for household maintenance and upkeep. Renovations are prevalent to prevent deterioration, keep homes modern and current, and for the optimum appearance. Many homeowners invest large amounts into their households, with most taking a loan for funding of the projects.

Among the most popular work done include upgrading kitchens and redoing bathrooms, two spaces that can have exceptional resale value when the spaces are kept up-to-date. The idea is that there will be a significant return on the investment once the house is put on the market and ultimately sells. It greatly depends on exactly how much a homeowner continues to invest in that will genuinely work out in their favor or not.


The survey indicated that nearly 20% of applicants chose to obtain loans as a way to get funds to be able to take a trip or perhaps travel for some extended enjoyment. The only issue with this choice is it is ultimately more expensive to invest in a vacation using a personal lender than opening a savings account and contributing funds due to the high interest rates and potential for longevity of the payment period.

Deposit For A Home

The Norwegian housing market is relatively stringent for those just entering as new buyers. It requires at least 15% down as a minimum deposit. The price point for homes has also elevated significantly, meaning the deposit will need a large sum of money. That makes it mandatory to reach out to a lender to obtain the necessary funding.  

The interest rate for the borrowed deposit money is substantially higher than for a typical mortgage loan requiring the borrower to have a pretty adequate income to handle these two payments satisfactorily and on time to maintain a decent credit rating.

Final Thought

For some Norwegians, an unsecured personal loan might be a worthwhile answer to their particular situation. But there comes the point where the solution could create a more expensive resolve than looking at other resources to handle their personal circumstances, depending on what you might be using the loan money for.

In some cases, financial advisors recommend extreme budgeting and cutting back on monthly expenses to contribute more to savings instead of creating more debt. You can also approach your current employer regarding a potential promotion or, at the least, a pay increase. If that’s not possible, perhaps you can look into a side gig to accumulate more funds.

If working with a consultant to find a way to bring more funds is impossible, make sure to obtain quotes from as many trusted lenders in Norway as possible to get the best rates with the least repayment period to save yourself some money in the long term. 

You don’t want to pay more for a loan for a few of these expenses than you would have by merely saving for a bit to pay for them outright (except with refinancing - that’s always a smart move).