Before submitting an application for a loan, you should first consider carefully what options you have. Here’s a look at what you should compare when it comes to private loans.

Just remember that we can’t list everything that can be compared here, but here we just go through the main points. Do you feel that we have missed something, this is something that you will obviously also compare.



This is often a relatively small part of the total cost of a loan. The setup fee is one thing that can vary between different lenders where some do not charge at all while others charge a few hundred dollars for this.

There may also be other fees for a loan such as newspaper fees. Aviation fees that you may be able to avoid by not having a letter sent without you taking the information in another way.


The biggest cost of your loan is the interest rate and therefore it is obviously interesting to compare it between the different lenders. The interest rate you get to pay is not decisive but it gives you a good guide on which lender is the cheapest.

Effective interest rate


For all loans that extend for at least one year, the effective interest rate is a very good way to compare the various loan institutions. This is when you get an effective interest rate by pooling all costs together and calculating these as an interest rate on an annual basis. Thus, ordinary interest, set-up fee, newspaper fees and all other costs are included here.

Just make sure that when you compare effective interest rates between different lenders you do this with equivalent loans. A small loan that will be repaid in one year will have a much higher effective interest rate than a large loan that is repaid in several years. Nothing to say that the lender with a high effective interest rate has a higher one for a large loan. Therefore, compare equivalent private loans.