Am I allowed to take a payday loan in Denmark?
Yes — but a consumer or payday loan is tightly regulated after the 2020 reform. There is an interest cap, so the annual cost (ÅOP) may be at most 35% when the loan is taken, and a cost cap, so total costs may not exceed 100% of the loan amount — you never repay more than double the borrowed amount in costs. It is forbidden to advertise credit with an annual cost of 25% or more, and forbidden to market loans in connection with gambling. The lender must hold a licence. You have a 14-day cooling-off right on the loan agreement itself.
📋 The rules
- The annual cost may be at most 35% (interest cap)
- Total costs at most 100% of the loan
- Forbidden to advertise credit with an annual cost of 25% or more
- Forbidden to market loans in connection with gambling
- The lender must hold a licence
🔓 Exceptions
- Mortgage loans are exempt from the rules
- Credit purchase of a specific good or service is exempt from the gambling ban
- You have a 14-day cooling-off right on the loan agreement itself
⚠️ Penalties & fines
Breaches are punished with fines — fines of up to 1 million kr have been given for misleading marketing. Firms can also lose their licence, and over-cap agreements cannot lawfully be concluded.
📎 Official sources
- Consumer Ombudsman · Credit cost cap →
- Consumer Ombudsman · Marketing loans at gambling →
- L 149 Payday loan reform · Retsinformation →
❓ Frequently asked
Can I take a payday loan?
Yes, but it is tightly regulated. The annual cost may be at most 35%, and total costs may not exceed 100% of the loan.
What is the interest cap?
A cap so the annual cost in percent (ÅOP) may be at most 35% when the loan is taken.
What is the cost cap?
Total costs may not exceed 100% of the loan amount, so you never repay more than double in costs.
Can firms advertise payday loans?
Not credit with an annual cost of 25% or more, and not in connection with gambling.
Do I have a cooling-off right on a loan?
Yes, 14 days on the loan agreement itself. On withdrawal you repay the principal plus interest within 30 days.
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