The two types of loan contract in Norway based on (Norwegian State Loan Fund or NSEF)

1. Income-Linked Loans.

Income-linked loan’s main feature is the payment of the loan of the borrower that is linked to a fraction of the borrower’s future income depending on how much is their agreement with the creditor. In short, if you have borrowed $100,000 and your agreement between you and your lender is you would only pay 5 percent of your annual income, you will be paying 5 percent yearly until your loan is fully repaid.

If, for instance, you only pay less than the agreed interest, your principal loan will increase. The action taken from the annual earnings of the borrower are most likely the same with the loan contract with property as collateral.

Income-linked loans however, are different from equity since this type has the rules of no ownership. They only own a part from the borrower’s income and not the personal property of the borrower.

Other types of loans you can get on Denmark and Norway are from the following reputable loan providers

• Lån Penge – Top Consumer Credit Providers in Denmark
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• Lån – Norway consumer loans and credits
• Darlehen – Barrow money in Germany, quick and fast
• A-kasse – Unemployment funds to pay your loans in Denmark

2. Mortgage Type Loans.

These types of loan are the most common to people. It is the traditional loan where the borrower will borrow money and repay it according to what type of repayment plan he has chosen.

It comes in three variations;

a. Straight Annuity. The loan where most people used to have wherein the payment stays at its original rate over time but it can be changed by the market rate if this loan belongs to the floating interest rate.

b. Series loan. It is a series of loan where the borrower has an equally-sized payment plus the interest rate in each of the payment period. So when you are paying your supposed repayment, this will result into decreasing amount of the payment over the period of your payment for the loan.

c. Modified annuity. This type grows in size of payments in some term. In Sweden, student loan are repaid such that their payment and its real terms are both of the same size. In other words, their payment has the same purchase power although it may increase nominally.