Loan offers

A loan offer is an offer for a loan from one or more lenders - typically banks or mortgage lenders.

A classic loan offer is when a prospective borrower asks a bank or mortgage company for a loan, after which the lender sends an offer with the terms of the loan.

The loan offer contains the framework of the loan, such as principal, interest rate, APR, repayment schedule, etc.

Today, there are several online services where loans can be compared and where the borrower can request several players for a loan. This makes it possible to get multiple loan offers from different lenders.

The loan offer can be used to compare different loans so that the borrower can make an informed choice about which loan is the best fit.

What does a loan offer contain?

A loan offer should contain all the relevant information a borrower needs to make an informed borrowing decision.

Typically, a loan offer contains the following information:

• Loan amount (principal)
• Benefit per year before tax
• Benefit per year after tax
• Possible installments
• Interest rate in percent per year
• Debtor interest in percent per year
• ÅOP (Årlige omkostninger i procent)
• Interest rate type (e.g. fixed or variable rate)
• Term of the loan
• Number of installment-free years
• Course
• Total amount to be paid during the term of the loan
• Present value after tax at a discount rate of x%
• Name of the lender

Relevant legislation on loan offers

If you want to find relevant legislation on loan offers, you should especially look into the Credit Agreements Actincluding chapter 2.

In addition, you should review the executive order on good practice for mortgage creditwhich applies specifically to loan offers for home loans and mortgages.