Regulatory AlertsDenmark: lending & credit regulation
RegulatedFinanstilsynet regulates consumer credit via Act on Consumer Loan Businesses; SME lending largely unregulated
- Lead regulator
- Finanstilsynet (Danish Financial Supervisory Authority)
- Also involved
- Skattestyrelsen (tax) · Erhvervsstyrelsen (business registration)
- Core law
- Act on Consumer Loan Businesses (2025)
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- —
- Data protection
- GDPR · Datatilsynet
- Sandbox
- —
Denmark strictly regulates consumer credit businesses under the Act on Consumer Loan Businesses, supervised by Finanstilsynet. This regime imposes licensing, fit-and-proper management tests, and a 35% APR cap. SME and commercial lending generally fall outside this specific consumer protection framework unless structured as mortgage or credit servicing activities.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceConsumer Loan Business License[1] 35% APR cap; strict suitability criteria for management. | — | — | Finanstilsynet |
| SME / commercial lending | Unregulated General commercial lending not subject to consumer credit act. | — | — | — |
| Microfinance | Uncertainverify with regulator No specific microfinance regime identified in source documents. | — | — | — |
| Buy-now-pay-later | Uncertainverify with regulator BNPL often falls under consumer credit if deferred payment; status unclear. | — | — | — |
| P2P lending platform | Uncertainverify with regulator Platform model not explicitly defined in provided consumer credit act. | — | — | — |
| Credit bureau / scoring | Unregulated Scoring is a service, not a lending activity per se. | — | — | — |
| Debt collection | Uncertain[2]verify with regulator Credit servicing requires license under separate act; collections nuance unclear. | — | — | — |
New — what changed recently
Market-entry checklist
- 1Register business with ErhvervsstyrelsenObtain CVR number as mandatory first step for any financial activity.
- 2Apply for Consumer Loan LicenseSubmit application to Finanstilsynet demonstrating fit-and-proper management.
- 3Ensure 35% APR ComplianceStructure all consumer credit products to strictly adhere to the annual percentage rate cap.
- 4Implement Good Conduct OrderAdopt policies prohibiting misleading or aggressive commercial practices per 2019 Order.
Sources
- Act on Consumer Loan Businesses · 2025-12-04
- Act on Credit Servicing Activities and Credit Purchasers · 2025-11-18