FoxyCredit Experts Discuss Responsible Lending in Northern European Countries: Norway and Denmark

To protect customers within the financial sector, it is crucial to uphold ethical lending. To bring attention to responsible lending practices, FoxyCredit, a reputable financial company, conducted a comprehensive examination of such practices in Norway and juxtaposed them with those in Denmark. Now, let’s dive into the available data and statistics.

Assessment of Affordability

FoxyCredit experts emphasizes that lenders in Norway thoroughly evaluate borrowers’ financial capacity before approving loans. The study reveals that in 2022, the average monthly income in Norway was roughly 3,739 EUR. Borrowers made an average monthly loan payment of approximately 848 EUR. This indicates that loan payments in Norway are reasonable and do not surpass 30% of the borrower’s net monthly income.

Similarly, lenders in Denmark must assess a borrower’s creditworthiness before granting loans. However, the study uncovered that Denmark’s average monthly net income was considerably lower at around 6100 EUR in 2022. 

Borrowers made an average monthly loan payment of about 750 EUR. Consequently, loan payments in Denmark appear to be below 30% of the borrower’s monthly net salary, demonstrating a comparable approach to assessing affordability as observed in Norway.

Limits on Interest Rate

Denmark has implemented an interest rate cap on consumer loans to counter abusive lending practices. According to research, the maximum annual percentage rate (APR) for consumer loans in Denmark was limited to 35% in 2022. 

This step intends to safeguard borrowers from excessive interest rates and encourage ethical lending standards. On the other hand, Norway has a 23 percent cap on the APR for all secured loans and a 35 percent cap on all unsecured loans to promote responsible lending practices.

Various Payment Plans

Denmark has implemented supplementary regulations for lenders to ensure borrowers struggling with financial hardships can repay their loans. FoxyCredit’s investigation shows that Danish lenders must propose options to extend the loan term, reduce the loan payments, or provide other feasible repayment alternatives.

In Norway, there are no explicit instructions for payment plans. However, lenders collaborate with borrowers encountering financial challenges and examine mutually beneficial solutions. In such circumstances, loan restructuring or alternative repayment options may be suggested.


Responsible lending principles are crucial to keeping consumers safe in the financial sector. In this regard, Norway and Denmark have both implemented similar standards. These principles comprise affordability assessments, clear loan disclosures, and ethical marketing practices. But there are some minor differences in their respective guidelines and specifications.

FoxyCredit is a financial and analytical service where you can compare loan terms, amounts, and interest rates, and get acquainted with the mandatory documents and requirements of financial institutions in your country. The company provides services in Sweden, Denmark, Norway, Finland, Estonia, Lithuania, Bulgaria, Romania, Poland, and Ukraine.

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