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Six things to know before taking out a loan in Norway

Finding a loan can be time-consuming. Finding the right loan for you while living in Norway is even more difficult, especially with multiple banks competing for your interest.

Six things to know before taking out a loan in Norway
Photo: bruce mars/Pexels

Here are some tips that you can bank on to help with the process.

1. Do your homework

Regardless of whatever reason you require a loan, be it refinancing existing loans, a new kitchen or a new car, investigate your own finances and draw up a (realistic) budget in terms of how much you can afford to repay each month if you take out a loan. Calculate your income and expenditure and, in particular, factor in any other loans you may have.

2. Use a loan broker

Chances are, you are bombarded with offers from banks all looking to throw money in your direction. But siphoning through all of them can be incredibly time consuming. Using a loan broker, such as DigiFinans, takes the hassle out of the loan search. DigiFinans handles your application and ensures the banks are competing for you instead of the other way around. Oh, and the service is free.

Click here to start your loan application with DigiFinans

3. Family matters

The bank of mum and dad has helped out many loan applicants in the past but it isn’t always open for business. Including a co-applicant — particularly if you are newish to living in Norway — will often increase your chances of getting a loan, which in turn will result in better terms and a lower interest rate. Your spouse, registered co-habitant and, in some cases, friends and your parents can also be a co-applicant.

4. Merge your loans together

One big loan is easier on your pocket than several small loans combined. Prior to making your new application, factor in the possibility to combine all your loans together, which will often result in a lower interest rate. The experts at DigiFinans can help you with your application and simplify your financial life.

5. Be thorough

Granted, you want the money and you want it now but your loan application will only stand a chance if you provide full and accurate information when you apply. Banks, of course, want to loan you money but not at any cost so ensure that your accounts are in order. If your loan application is approved, you can borrow up to 500,000 krone by using DigiFinans.

Start your loan application with DigiFinans now

6. Assess all offers

Before you book a flight or hotel, you probably use a price comparison website. The same logic applies when looking for a loan. The whole process is made considerably easier by using a service such as DigiFinans, which liaises with the banks directly. Minutes after filling in an application, you will get a flurry of messages with loan offers from various banks and loan providers. Then it is up to you to look at factors such as interest rate, monthly costs and bank fees to decide which offer suits you best. The team at DigiFinans follows up on finished applications once the loan has been processed.

Example loan: 65.000 kr. 5 år Kost 28.720 kr. Tot 93.720 kr.

This article was produced by The Local Creative Studio and sponsored by Salus.

 

 

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EUROPEAN UNION

Pensions in the EU: What you need to know if you’re moving country

Have you ever wondered what to do with your private pension plan when moving to another European country?

Pensions in the EU: What you need to know if you're moving country

This question will probably have caused some headaches. Fortunately a new private pension product meant to make things easier should soon become available under a new EU regulation that came into effect this week. 

The new pan-European personal pension product (PEPP) will allow savers to take their private pension with them if they move within the European Union.

EU rules so far allowed the aggregation of state pensions and the possibility to carry across borders occupational pensions, which are paid by employers. But the market of private pensions remained fragmented.

The new product is expected to benefit especially young people, who tend to move more frequently across borders, and the self-employed, who might not be covered by other pension schemes. 

According to a survey conducted in 16 countries by Insurance Europe, the organisation representing insurers in Brussels, 38 percent of Europeans do not save for retirement, with a proportion as high as 60 percent in Finland, 57 percent in Spain, 56 percent in France and 55 percent in Italy. 

The groups least likely to have a pension plan are women (42% versus 34% of men), unemployed people (67%), self-employed and part-time workers in the private sector (38%), divorced and singles (44% and 43% respectively), and 18-35 year olds (40%).

“As a complement to public pensions, PEPP caters for the needs of today’s younger generation and allows people to better plan and make provisions for the future,” EU Commissioner for Financial Services Mairead McGuinness said on March 22nd, when new EU rules came into effect. 

The scheme will also allow savers to sign up to a personal pension plan offered by a provider based in another EU country.

Who can sign up?

Under the EU regulation, anyone can sign up to a pan-European personal pension, regardless of their nationality or employment status. 

The scheme is open to people who are employed part-time or full-time, self-employed, in any form of “modern employment”, unemployed or in education. 

The condition is that they are resident in a country of the European Union, Norway, Iceland or Liechtenstein (the European Economic Area). The PEPP will not be available outside these countries, for instance in Switzerland. 

How does it work?

PEPP providers can offer a maximum of six investment options, including a basic one that is low-risk and safeguards the amount invested. The basic PEPP is the default option. Its fees are capped at 1 percent of the accumulated capital per year.

People who move to another EU country can continue to contribute to the same PEPP. Whenever a consumer changes the country of residence, the provider will open a new sub-account for that country. If the provider cannot offer such option, savers have the right to switch provider free of charge.  

As pension products are taxed differently in each state, the applicable taxation will be that of the country of residence and possible tax incentives will only apply to the relevant sub-account. 

Savers who move residence outside the EU cannot continue saving on their PEPP, but they can resume contributions if they return. They would also need to ask advice about the consequences of the move on the way their savings are taxed. 

Pensions can then be paid out in a different location from where the product was purchased. 

Where to start?

Pan-European personal pension products can be offered by authorised banks, insurance companies, pension funds and wealth management firms. 

They are regulated products that can be sold to consumers only after being approved by supervisory authorities. 

As the legislation came into effect this week, only now eligible providers can submit the application for the authorisation of their products. National authorities have then three months to make a decision. So it will still take some time before PEPPs become available on the market. 

When this will happen, the products and their features will be listed in the public register of the European Insurance and Occupational Pensions Authority (EIOPA). 

For more information:

https://www.eiopa.europa.eu/browse/regulation-and-policy/pan-european-personal-pension-product-pepp/consumer-oriented-faqs-pan_en 

https://www.eiopa.europa.eu/browse/regulation-and-policy/pan-european-personal-pension-product-pepp_en 

This article is published in cooperation with Europe Street News, a news outlet about citizens’ rights in the EU and the UK. 

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