Receiving financial support in the form of cash loans can be a significant alleviation for the home budget. Here’s all you need to know about them if you live in Norway.
Cash loan in Norway – when is it useful?
Have you just moved to Norway with a plan to develop a start-up or a personal brand? Or maybe you’re planning to set up your own cozy place first? The cash loan can be a great support, regardless of which kind of plans you have as an expat. For the business owners and people who recently invested in a new house or flat, cash loans are often crucial. Even the most farsighted person can misjudge the approximate cost of an investment. In this case, receiving such financial support can save the company or ongoing construction. Its advantages are numerous – it usually doesn’t require proven savings and passing through the ton of formalities.
Cash loan in Norway – what are the criteria?
Many people believe that cash loans can be obtained only by the citizens of a country, However, that’s only a myth. If you are a foreigner living in Norway, you also can receive this kind of support. There are two conditions – firstly, you need to register as a resident, and secondly, you should have at least a three-year history of employment in the country. If you fulfill these criteria, you may even qualify for a mortgage. It’s also important to mention, that you should be at least 20 years old – not 18, as in many countries.
What is the maximum loan period?
The cash loan in Norway is called forbrukslån. It doesn’t require paper securities and can be taken towards the account of any purpose. The maximum amount of such support is 500 000 Norwegian crowns. How long the loan period can be? It can depend on a few factors. Usually, the cash loan is given for a period of a maximum of 5 years but in certain cases, the banks may prolong it up to 15 years. However, there’s a catch. The debtor has to pay off his other financial obligations before signing such an agreement.
To receive any type of loan in Norway, you’ll need an identification number that every permanent resident obtains – in Norwegian, it’s called personnummer. When filling a loan application, you will probably be asked to present proof of residency as well as the documented list of income. Remember, that the temporary D-nummer, received before registration as a long-term resident, won’t entitle you to any type of loan.
In special cases, the bank may give financial support to residents who have been working in Norway for less than three years. It’s worth trying by filling the application, even if you’re not 100 % sure of your chances.
Article prepared in cooperation with LOCALMARKET.
