The repayment period ranges from 1 to 15 years, or 5 years if you do not need to refinance. The nominal interest rate varies from a minimum of 4.9% to a maximum of 23.44%. The effective interest rate ranges from a minimum of 8,17% to a maximum of 34,16% (!), so it can be very beneficial to choose the best offer. Example: NOK 140,000 over 5 years, effective interest rate 13.44%, cost NOK 49,412, total NOK 189,412.
The interest rate is variable and set individually. Nominal interest rate 11.9%, effective interest rate 13.14%, loan amount NOK 200,000 with repayment over 5 years, cost NOK 69,078, total NOK 269,078. Eff. interest rate: 6,82%-48,76%.
Loan example: nominal interest rate 8.67%, effective interest rate 10.34%, NOK 90,000 o/5 years, set-up fee NOK 870, term fee NOK 35/ month. Cost NOK 24,407, total NOK 114,407. Max. effective interest rate 32.10
Example: The interest rate is variable and set individually. Annuity loan NOK 150,000, 5 years, nom. interest 12%, estab./term fee NOK 0 gives eff. interest 12.68%. Total cost: NOK 200,200 or NOK 3,337/month (60 payments). Repayment period 1-15 years, 5 years if you are not refinancing. Eff. interest: 5.17%-48.76%.
Repayment period 1–15 years (max 5 years if you are not refinancing). Nominal interest rate from 7.0–40.0% p.a. Effective interest rate from 7.2–49.8% p.a. depending on loan amount and repayment period. The interest rate is variable and set individually after a credit assessment. Example: NOK 230,000 over 6 years, nominal interest rate 11.39%, effective interest rate 12.00%, monthly installment approx. NOK 4,424, total to pay NOK 318,522.
Example: Annuity loan 150,000 NOK, 5 years, nominal interest rate 10.90%, estab./term deposit 0 NOK gives effective interest rate 11.46%. Cost: 45,234 NOK. Total cost 195,240 NOK, cost 3,254 NOK/month. Repayment period 1-15 years, 5 years if you are not going to refinance. Updated 2025-03-24
"Thorn Privatlån Pluss / TryggLån Representative example: effective interest rate 26.0%, 25,000, o/5 years, cost 17,588, total 42,588. The example is calculated based on the monthly amount being paid via direct debit and that the agreement's repayment plan is adhered to. Thorn Samlelån Representative example: effective interest rate 14.42%, 120,000, o/8 years, cost 77,204, total 197,204. The example is calculated based on the monthly amount being paid via direct debit and compliance with the agreement's repayment plan."
Example: Nominal interest rate 11.9%, effective interest rate 13.20%, loan amount NOK 135,000 with repayment over 5 years, cost NOK 101,038, total NOK 236,038. Establishment fee varies from NOK 0 to 1,990. The repayment period is 1 to 20 years. Max 5 years if you are not refinancing. Nominal interest rate varies from a minimum of 6.9% to a maximum of 23.4%. Effective interest rate varies from a minimum of 8.19% to a maximum of 26.23%.
Representative example: effective interest rate 26.1%, 25,000, o/5 years, cost 17,674, total 42,674. The example is calculated based on the monthly amount being paid via direct debit and that the agreement's repayment plan is adhered to.
"Representative example: Eff. interest 24.24%, 26300, o/5 years, cost. 17206, tot. 43506. The example is calculated based on the monthly amount being paid via direct debit and compliance with the agreement's repayment plan. "
Representative example: effective interest rate 28.79%, 40,000, o/5 years, cost 31,208, total 71,208. The example is calculated based on the monthly amount being paid via direct debit and compliance with the agreement's repayment plan.
Representative example: effective interest rate 31.60%, NOK 30,000, o/5 years, cost NOK 25,794, total NOK 55,794. The example is calculated based on the monthly amount being paid via direct debit and compliance with the agreement's repayment plan.
Representative loan example Ferratum Fleksikreditt: 48.17% eff. interest, 30,000, o/12 months, 39.97% nom. interest, cost. 6,494.72 kr. Total: 36,494.72 kr.
Borrowing costs money. Borrowing costs money. If you cannot repay on time, it may affect your credit record and make future borrowing more difficult. Always compare the total cost of credit before applying.
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English-speaking expats in Norway considering an SMS loan need to understand the specific conditions and requirements in the Norwegian market. These are typically unsecured, short-term loans designed for smaller amounts, often repaid within a month or two. While convenient for immediate needs, they come with high interest rates and fees. Understanding the cost is paramount before committing.
Understanding SMS Loans in Norway
SMS loans, also known by terms like ‘mikrolån’ or ‘forbrukslån’ (consumer loans, though SMS loans are a specific, smaller subset), are accessible online. The application process is usually streamlined, requiring minimal documentation compared to traditional bank loans. However, lenders conduct credit checks to assess repayment capacity. Expats must meet residency and income requirements. The Norwegian Directorate of Immigration (UDI) website provides information on residency requirements, which are fundamental for financial applications.
Eligibility for Expats
To apply for an SMS loan in Norway, expats generally need:
A Norwegian personal identification number (fødselsnummer or D-nummer).
A registered address in Norway.
A stable income from employment in Norway. Lenders will verify your income through tax records or pay slips.
A Norwegian bank account.
To be of legal age, typically 18 or 20 years, depending on the lender.
A clean credit history within Norway. Past financial defaults can impact your application.
It is crucial to have your Norwegian residency and identification sorted before applying for any financial product. Information on obtaining a D-nummer can be found on the Norwegian Tax Administration website (Skatteetaten).
The Costs of SMS Loans
The primary drawback of SMS loans is their high cost. Interest rates are significantly higher than those for mortgages or standard personal loans. Lenders often advertise a monthly interest rate. To understand the true cost, you must calculate the Annual Percentage Rate (APR), which includes all fees and interest over a year. Compare this across different providers. For instance, a loan of 5,000 NOK repaid over 30 days might incur fees and interest that effectively double the repayment amount over a year when extrapolated.
Interest Rates and Fees
Be aware of:
Interest Rate: Usually expressed as a daily or monthly rate. Always convert this to an annual rate for comparison.
Establishment Fee: A one-time fee charged at the beginning of the loan.
Late Payment Fees: Penalties if you miss a payment deadline. These can be substantial.
Service Fees: Some lenders charge ongoing monthly fees.
Always request a full breakdown of all costs before accepting a loan offer. The total amount repayable must be clearly stated.
Repaying Your SMS Loan
Repayment terms for SMS loans in Norway are typically short, ranging from 15 to 60 days. Some providers may offer slightly longer terms for larger amounts, but these are less common for true SMS loans. Prompt repayment is essential to avoid accumulating high late fees and further interest charges, which can quickly lead to debt spirals.
Consequences of Non-Repayment
Failure to repay an SMS loan on time can have serious consequences:
Aggressive debt collection procedures.
Damage to your credit score, making future borrowing difficult.
Legal action by the lender.
Interest and fees compounding, increasing the debt significantly.
If you anticipate difficulties in repayment, contact the lender immediately to discuss possible arrangements. Proactive communication is better than ignoring the problem.
Alternatives to SMS Loans
Given the high costs, consider alternatives. If you need funds for a larger purchase or a longer-term need, explore other loan types available in Norway. These may include personal loans, which generally have lower interest rates and longer repayment periods. Visit our Norway Personal Loans page for more details.
For expats seeking broader financial options in Norway, exploring all available loan products is wise. You can see compare loans in Norway to understand the spectrum of credit options. Further information on various loan categories can be found on our countries hub or specifically within our loan types hub.
Disclaimer: This information is for educational purposes only and does not constitute financial advice. LoanExpat.com does not guarantee loan approval or specific terms. Always conduct your own research and seek professional advice when making financial decisions. We do not receive commissions for any providers listed on this page or any other page on this website.
What is an SMS loan in Norway?
An SMS loan, often called a 'mikrolån' in Norway, is a type of unsecured, short-term loan typically applied for and disbursed online, often through mobile devices. They are usually for smaller amounts and meant to be repaid quickly, often within a month or two.
Can expats get SMS loans in Norway?
Yes, expats can generally apply for SMS loans in Norway provided they meet the lender's criteria, which usually include having a Norwegian personal identification number (fødselsnummer or D-nummer), a registered address, a stable income in Norway, and a Norwegian bank account. A clean credit history in Norway is also essential.
What are the typical costs associated with SMS loans in Norway?
SMS loans in Norway typically have high interest rates and various fees, including establishment fees and late payment penalties. It is crucial to calculate the Annual Percentage Rate (APR) to understand the full cost of borrowing, as advertised monthly rates can be misleading.
What is the repayment period for an SMS loan in Norway?
Repayment periods for SMS loans in Norway are generally short, ranging from 15 to 60 days. Some lenders might offer slightly longer terms for larger sums, but this is less common for this loan type.
What happens if I cannot repay my SMS loan on time?
Failing to repay an SMS loan on time can lead to substantial late fees, accumulating interest that significantly increases the debt, damage to your credit score, and potentially aggressive debt collection actions or legal proceedings by the lender.
