Today anyone would dread not being able to make purchases or fund their dream projects. I mean, the global economy is increasingly becoming dynamic and nobody would feel safe without having a strong liquid asset. But what happens if you’re caught in a difficult situation and your liquid assets are plummeting? In such situations, loans always come in handy.

For this article, we will be discussing all you need to know about loans in Sweden. By the end of this blog, you’ll be able to know how to get a loan in Sweden, how loans work in Sweden, the requirements needed to get the loan, how much loan can you get, and determine whether a foreigner can get a loan in Sweden.

Loan in Sweden

With the high standards of living in Sweden, loans play a significant role in the lives of many adults. But, not in a negative way like most people would assume, since the majority of people in Sweden can pay their debts according to the Swedish Enforcement Authority. This is evident in the Swedish financial market where there has been a steady rise in instant loan platforms since 2006. As of 2014, instant loans seemed to be the most common way of lending while student loan was the most common loan in Sweden.

For years, Sweden’s population has relied on the traditional Bank loans and traditional mortgages for financial support until recently when the country started witnessing a surge in other alternative solutions mostly personal loans or private loans. Personal or private loans have taken up a major slice of the financial market in Sweden. Unlike the traditional loans (bank loans), these loans neither require guarantors nor an individual’s belonging to be attached as collateral. Furthermore, it’s a matter of minutes or seconds before a loan application is processed and approved. I bet you now understand why personal or private loans are becoming popular in Sweden. But here’s the catch, Private loans are only accessible to Swedish citizens or long-term residents. Usually, when applying for the loan, the lender or company runs your data through a credit rating agency to determine 1) whether you are eligible for the loan and 2) your transaction history to act as proof that you can pay the loan in time. Even though banks in Sweden have been trying to introduce these kinds of loans, they tend to take more time to process and approve them. As a result, they are still unable to meet an individual’s immediate needs. This has made them unpopular among Swedish citizens or any other person seeking personal or private loans in Sweden.

The requirements for getting a loan in Sweden

Honestly, not much is needed to access a loan in Sweden. However, certain things might disqualify you from accessing any form of a loan. First, you need to be above the age of 18. No private or government entity will give you a loan in Sweden if you are below the age of 18. Some lending companies or banks have set the minimum age of 21 to 25 or older. Secondly, you need to be a Swedish citizen or a long-term resident with a permanent address. You also need to have a job or run a business in Sweden and all your transactions or salary have to be channeled through a Swedish bank. Your income also matters a lot, however, it is difficult to pinpoint the amount that guarantees you a loan since different lenders have different amounts set. So, next time your loan application is declined in Sweden, just know you might not have met one of these requirements.

How much loan can you get in Sweden?

Now that you are qualified for a loan in Sweden, you’re probably wondering how much you can borrow. Good news! Sweden is very lenient and generous when it comes to borrowing. On average (for your housing), you can borrow up to 4.5 times your yearly income. Rule of the thumb, you can borrow 5times your salary and up to 85% of the value of your apartment. Some companies and banks in Sweden will lend you more but with a higher interest rate.

For personal loans the limit may be higher and your can apply to find out.

Can a foreigner get a loan in Sweden?

Yes. As a foreigner, you can still qualify for the loan after following a few steps. First, you’ll have to consider contacting (Skatteverket) for you to get registered in the Swedish population register. I bet you’re wondering why registration is important. Well, in Sweden, every legal binding action such as loan agreement or registration of phone accounts requires your personal identity number. Without this number, it’s very unlikely that you will be able to obtain a loan in Sweden. Next, you’ll have to prove that you have a job and income. You must also provide proof of income and ensure that you don’t have any active debt registration at the Swedish Enforcement Authority. Basically, this is to assess your creditworthiness before granting you a loan. Those working outside the country, for instance, those working in Denmark and living in Sweden, will have to find alternative ways for proving their creditworthiness. This may include but is not limited to an employment contract and latest payslips among others. On the other hand, foreign students are also able to get loans through the Swedish National Board of students aid. Students who have been cohabitating with a Swedish citizen or married to a Swedish citizen are also eligible for this loan.

What happens if you default?

It is well known that when it comes to administration and economics, Sweden has highly efficient administrative courts and agencies that deal with such matters. So, there is no way you’re going to avoid paying your loan. But what if you can’t pay? Well, you’ll be part of a three-step process that will ensure you pay the loan. First, you’ll be sent a payment reminder with an administrative fee. If you don’t comply and pay within the time frame indicated in the reminder you’ve received, your loan will be forwarded to a collection agency and this will incur additional fees. If you insist on not paying the loan and the collection agency, your loan will now be forwarded to the Swedish Enforcement Agency where you will be registered as indebted. This will automatically affect your ability to secure a loan in the future and even restrict you from getting into any legally binding contract with anyone or any company. To be on the safer side just make sure you can repay your loan and avoid this mess.


Loan requirements vary across different vendors in Sweden, but there are a few considerations such as creditworthiness and income levels that seem to be common factors that most financial institutions in Sweden will look at when reviewing your loan application. With that in mind, it is important to familiarize yourself with the common qualification before you start shopping for a loan in Sweden. Also, understanding the various aspects associated with loans in Sweden will not only streamline your application process but also improve your experience with the Swedish financial systems.