What is a consolidation loan?
A consolidation loan is a new, unsecured loan that you use to pay off several existing loans and credits – for example personal loans, credit card debt, instalment purchases and small loans. Afterwards you have one loan, one interest rate and one monthly payment instead of several.
Through Zmarta you apply once, and your application is sent to several banks and lenders. Each lender makes its own credit assessment and replies with an offer or a rejection. Zmarta is licensed by Finansinspektionen (the Swedish Financial Supervisory Authority) as a credit intermediary and arranges loans in cooperation with several banks and lenders. The application is free of charge and non-binding.
A consolidation loan does not reduce what you owe. It can lower your interest costs if the rate on the new loan is lower than the average rate on your current debts – so compare the offers before you decide. Want to borrow for something else? Read more about personal loans.
How it works
1. Send your application
2. Choose your loan
3. Disbursement of the loan
When does it make sense to consolidate loans?
Consolidating can pay off if:
you have several loans and credits with high interest rates or fees, such as credit cards, instalment plans and small loans
the effective interest rate on the new loan is lower than the average rate on your current debts
you choose a repayment period that does not push up the total cost
It may not pay off if:
your current loans have lower interest rates than the offers you receive
you have fixed-rate loans where the lender can charge compensation for lost interest if you repay early
the only thing that lowers your monthly cost is a longer repayment period – then the total cost can end up higher
Which loans can you consolidate?
Debt | Can it be consolidated? |
|---|---|
Personal loans and small loans | Yes |
Credit card debt and account credits | Yes |
Instalment purchases | Yes |
Car loan with the car as security | Sometimes – compare first, a secured loan often has a lower rate |
Mortgage | No – mortgages are secured on the home and handled separately |
Student loan (CSN) | Possible, but rarely worth it since the CSN rate is low |
How much you can consolidate depends on the lenders' maximum amounts and on your ability to repay, which is always assessed. You can apply for SEK 5,000–800,000; the amount you are offered depends on each lender's credit assessment.
How are the old loans paid off?
How your old loans are paid off depends on the lender. Some pay them off for you using a power of attorney. With others, you state in the application which loans should be paid off, and they are paid directly when the new loan is disbursed. Otherwise, the full amount is paid into your account and you pay off the loans yourself.
If the money is paid out to you, the lender cannot know that it will go to your old debts. It then has to include both your current debts and the new loan when it assesses your ability to repay.
Consolidating loans via Zmarta – what's included
One application – one UC credit check
Individual offers to compare
One consolidation loan instead of several
Requirements for a consolidation loan
To apply for a consolidation loan via Zmarta, you need to:
be at least 18 years old
be registered in the Swedish Population Register (folkbokförd)
have an annual income of at least SEK 100,000
Meeting the requirements means you can apply. Whether you are granted a loan is decided by each lender after its own credit assessment.
You can apply with a co-applicant. You are then both jointly liable for the loan, the lenders assess both your incomes, and a UC credit check is made on both of you.
Payment remarks and debts with the Swedish Enforcement Authority
A payment remark (betalningsanmärkning) does not stop your application, but it affects the banks' assessment and can mean fewer or no offers.
If you have a debt with the Swedish Enforcement Authority (Kronofogden), you can still apply, but most lenders will not grant a loan. Those that do require a co-applicant.
How to compare the offers
When you compare the offers you see the nominal interest rate, effective interest rate, fees and monthly cost for each offer. Compare the effective interest rate – it includes the fees and makes the offers comparable.
The repayment period can differ between offers, and some offers may be account credits without a fixed repayment period. For those, we show a repayment period based on an assumption. A lower monthly cost can mean a longer repayment period and a higher total cost.
Rules worth knowing
No tax deduction: from 2026, interest on unsecured loans such as consolidation loans is no longer tax-deductible in Sweden.
Interest cap and cost cap: for loans taken out from 1 March 2025, the nominal interest rate may be at most 20 percentage points above the Riksbank's reference rate, and interest and fees together may never exceed the amount borrowed.
Early repayment: by law you always have the right to repay a loan early, in full or in part. With a variable rate there is no extra cost; with a fixed rate the lender may charge compensation for lost interest.
Right of withdrawal: you have 14 days to withdraw from a new loan agreement.
If you are struggling to pay your debts, your municipality's budget and debt counselling service (budget- och skuldrådgivning) can help you free of charge.
Frequently asked questions about consolidating loans
- How much can I save by consolidating my loans?
- Can I apply for a consolidation loan with a co-applicant?
- Can I consolidate my loans without permanent employment?
- Can I consolidate my loans if my creditworthiness is poor?
- Can I consolidate loans if I have a payment remark?
- What are the requirements for consolidating loans via Zmarta?