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*Loan example: Annuity loan SEK 5,000 in 1 year (12 installments). Nominal interest rate: 5.91%. Eff. interest: 29.12% per 2021-01-29. A total of SEK 5,655 to pay. Monthly cost: SEK 430.

Loan Sweden

At LoansSweden we try to simplify the loan process in Sweden by providing clear and straightforward information on securing a loan. From understanding the basic requirements to choosing the right type of loan for your needs, we’ll walk you through each step to ensure you make informed decisions in your financial journey.

Eligibility for a Loan in Sweden

Eligibility and Requirements for getting a loan in Sweden

To secure a loan in Sweden, foreigners must meet specific criteria.

Here’s an overview of the essential requirements:

  1. Residency Status: Applicants typically must be registered residents in Sweden, holding either a permanent residency or a long-term visa.
  2. Swedish Personal Identity Number (Personnummer): This is crucial for almost all financial transactions and registrations in Sweden.
  3. Stable Income: Proof of a steady, reliable income is necessary to assure lenders of your ability to repay the loan.
  4. Credit History: A good credit score in Sweden or evidence of a positive credit history in your home country can be beneficial.
  5. Employment Status: Being employed on a permanent basis or having a long-term contract often enhances loan approval chances.
  6. Bank Account: A Swedish bank account is usually required to facilitate loan transactions.
  7. Age Limit: Most financial institutions require borrowers to be at least 18 years old, though some may have higher age minimums.

Before applying, it’s advisable to check with specific lenders as requirements can vary.

How to Apply for a Loan in Sweden

Securing a loan in Sweden is a structured process designed to ensure that both the lender and borrower engage in a transparent and mutually beneficial agreement. Whether you’re looking to buy a home or a car or need a personal loan, the application procedure remains relatively consistent across different types of loans.

Below is a detailed guide to applying for a loan in Sweden, outlining each key step to take from initial consideration to receiving the funds.

  • Evaluate Your Needs: Determine the loan amount you require and what you can afford in terms of repayments.
  • Choose a Lender: Research various banks and financial institutions to find the best loan terms that suit your needs.
  • Prepare Documentation: Gather necessary documents, including proof of identity, residency, income, and employment.
  • Submit Application: Apply online or in-person at the chosen financial institution. Include all required documentation with your application.
  • Await Approval: The lender will assess your application based on their criteria. This process may take from a few days to a few weeks.
  • Review Offer: If approved, carefully review the loan offer, paying close attention to the interest rate, repayment terms, and any fees.
  • Accept Loan: If the terms are agreeable, accept the loan. The funds will typically be deposited into your bank account.

Ensure you understand the terms and conditions fully before accepting any loan offer.

How to apply for a loan in Sweden

Types of Loans Available in Sweden

You can access various loan options tailored to meet different financial needs in Sweden. As a foreigner, understanding these options can help you choose the one that best suits your circumstances.

Mortgage loans (House loans)

Mortgage Loans are specifically designed for purchasing property. These loans come with terms that depend on the property value, your income, and your ability to repay. The interest rates might vary based on whether the loan is fixed-rate or variable-rate.

Car Loans

Car Loans are offered to individuals looking to purchase a vehicle. These can be secured against the car itself or unsecured, impacting the interest rates and terms of the loan.

Personal Loans (Consumer loans)

Personal Loans are unsecured personal loans that can be used for various purposes, like buying appliances or furniture. The lack of collateral typically results in higher interest rates.

Credit Card

Credit Card Loans are revolving credit lines where the interest rate is applied to the amount you’ve borrowed through your card. These are flexible but can have higher interest rates compared to other loan types.

Debt Consolidation Loans

Debt Consolidation Loans allow individuals to combine multiple debts into a single loan with one monthly payment, often with a lower interest rate, simplifying debt management.

Quick Loans

Quick Loans offer immediate funds, usually in small amounts, with short repayment periods. The convenience comes with high-interest rates and fees.

Payday Loans

Payday Loans are short-term loans intended to cover expenses until the next payday. They carry high-interest rates and are designed for urgent financial situations.

Price Example of a Loan in Sweden

To illustrate how loan terms and conditions translate into monthly payments and total loan cost, let’s consider a practical example. In this scenario, we analyze an annuity loan—a common type of loan where the borrower makes fixed monthly payments over the loan’s term. These payments cover both the principal and the interest.

Loan TypeAnnuity Loan
Term12 years
Effective Annual Interest Rate6.98%
Loan Amount200,000 SEK
Monthly Payment2032 SEK
Total Number of Payments144
Total Repayment Amount292,653 SEK
Start/Management FeeNone
Nominal Interest Rate6.77% (variable)

How much can you loan in Sweden?

In Sweden, the amount you can borrow varies based on the loan type, your financial situation, and the lender’s criteria. The typical borrowing range for personal loans is between 1,000 and 600,000 SEK.

But what determines how much you can loan? Here’s the main factors.

  • Income and Debt: Lenders assess your income and existing debts to determine your ability to repay. A higher income and lower debt-to-income ratio can increase the amount you’re eligible to borrow.
  • Credit History: A good credit history in Sweden suggests you’re a reliable borrower, which can positively impact the loan amount offered.
  • Employment Status: Stable employment, especially if you’re on a permanent contract, reassures lenders of your capacity to repay, affecting the loan amount.
  • Lender’s Assessment: Each lender has specific guidelines for determining loan amounts. They consider risk factors and market conditions in their evaluation.
  • Loan Purpose: The reason for your loan can influence the amount. For example, lenders might be willing to offer more for home renovation compared to a vacation loan.
  • Regulations: There are legal frameworks in place that might limit borrowing amounts to prevent overindebtedness among consumers.


Frequently Asked Questions

Yes, foreigners can take loans in Sweden, but they must meet certain criteria, such as having a Swedish personal identity number (personnummer), a stable income, and, in most cases, a good credit history in Sweden.

The borrowing rate in Sweden varies depending on the type of loan and the lender. It’s influenced by the Riksbank’s base rate, the borrower’s creditworthiness, and market conditions. Personal loan interest rates can range widely, so it’s essential to compare offers.

Loans in Sweden require a formal application, where the lender assesses your financial situation, including income, debts, and credit history. Upon approval, you agree to repay the borrowed amount plus interest over a specified period. Payments are typically made monthly.

In Sweden, personal loans typically range from 1,000 to 600,000 SEK. The exact amount depends on factors like your income, debts, and creditworthiness. It’s important to borrow within your means to ensure manageable repayments.