No one wants to take out a loan in Denmark and end up paying more than they should. This guide shows you how to compare loans to save on interest and obtain better offers. It also discusses loan comparison, in addition to analysing the comparison site LendMe, to educate you on better loan decisions. LendMe has some useful pointers that you should utilise now to your advantage in your future loan decisions.
Taking out a loan without proper research puts you in a vulnerable position, where you may be forced to pay additional hidden or sky-high interest fees. As of August 2025, interest on new bank loans is said to be 4.36% on new bank loans (Statistics Denmark).
Mortgages, on the other hand, were said to be around 4.1% in the summer of 2025 (TheGlobalEconomy). By taking the time to compare offers, you will be able to save, even if the difference is marginal.
How Brokers Makes Loan Comparison Simple
One of the best companies that provides such services is LendMe, which brings together personal loan proposals from several Danish financial institutions. It acts as a comparison tool that enables you to see offers with varied interest rates, charges, and repayment schedules. You fill out one application, and the site displays a multitude of options to determine the lender with the most favourable terms. It adds convenience, transparency, and control to the entire system.
When assessing a loan, you need to look at the interest and any possible setup fees or monthly charges. Some loan providers might disguise the true annual interest by masking “hidden” set-up costs. The benefit of such a set-up loan is dubious. The best option is to compare a large set of personal loans.
Also consider how long you will repay. A shorter repayment term will often result in lower total interest payable, but higher monthly instalments. A longer repayment term may seem to have lower monthly installments, but will accumulate a higher overall interest payable. It is best to compare such loans side by side to assess the best option.
Impact of Small Differences in Rates
Imagine you take a DKK 200,000 loan paid fully in 10 years. One lender offers you a loan at 4.0% and the other at 4.5%. That 0.5 % difference might cost you some tens of thousands of kroner in interest alone over the life of the loan.
According to a 2025 report by the National Bank of Denmark, interest rates set by banks and mortgage credit institutions have consistently increased over the years. As the rates climb, the distance between offers that are considered good and bad improves. You must use comparisons to avoid paying more in a high-rate situation.
Also, pay attention to the interest rate, including payment on charges. The advertised rate can be very low, but after charges, other surcharges, and insurance are added, the paid rate can be very high. A loan comparison tool will show you those total cost figures side by side.
Finding the Right Loan for Your Needs
When you “lend” money from comparison platforms, you need to provide basic financials: income, existing debt, how much you want to borrow, and for how long you wish to repay the money. The more realistic your information, the more realistic the offers you will receive.
You should be open about existing debt and income discrepancies. Banks will check any discrepancies against the credit registry. If there is a discrepancy, the offers you see will become unrealistic or will be withdrawn later on.
In realistic terms, how long do you want to repay the loan for? Stretching repayment over long periods for reduced monthly repayment results in more interest paid in the long run. It is easier to visualise total interest payable in a scenario when multiple offers are presented for different durations.
Also, make sure you check if there is a charge for early repayment or a repayment penalty. Some lenders will charge you a fee when you repay early, which may go against your plans if you want to pay the loan ahead of time.
Making Smarter and More Informed Decisions
- To start, compare quotes from as many lenders as possible. The more lenders you get offers from, the better the chances of getting a favourable offer. LendMe gets offers from more than 18 banks in Denmark in a couple of minutes.
- Second, concentrate on the effective interest rate, which includes all costs, rather than only the headline rate. If the fees are lower on a slightly higher headline, the effective rate would be better.
- Third, if you have the added cost, consider taking the shorter repayment terms. More of the payment goes to the principal rather than interest, which translates to paying less over the life of the loan.
- Lastly, if you already have loans, consider the option of consolidation or ‘samlelån’. A lower overall rate of interest is possible by combining multiple small debts into a single loan.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.
