§ 5-2. Credit assessment (kredittvurdering): the bank's duty before granting a loan

Before the bank grants a loan, it must assess whether the customer can actually pay it back. The requirement also applies to a substantial increase in available credit. If security has been provided, the bank must ensure that its value is assessed as part of the overall picture.

The assessment must be based on sufficient and relevant information about income, assets, expenses and other financial obligations. The bank can obtain this from the customer, from a debt information company, from database searches or from other relevant sources, when necessary.

The third paragraph protects the bank when the work has been done properly. If the assessment is sound, the customer cannot later claim that the assumptions changed and use this as an objection. The exception is where the parties have agreed that the bank is to bear the risk for such assumptions. The Government may issue more detailed rules on credit assessment, including on valuation of security and loan-to-value ratio.

This section is at the core of several rules in the chapter. Before the agreement, the consumer (forbruker) must receive explanations under § 5-1. While gathering information, the bank has a duty to inform under § 5-3. Under § 5-4, the bank may only grant a loan to a consumer if it is likely that the customer can pay. If the bank has not assessed creditworthiness, there are consequences under § 5-5: The bank cannot argue against the consumer that the loss should have been limited, and certain contract terms do not become binding, so that the customer can instead demand the market interest rate.

The rules on credit assessment are also used elsewhere. § 5-17 on co-debtors (samskyldnere) and § 6-1 on personal guarantees (kausjon) refer here, and § 1-9 (mandatory nature) refers to this section. Example: The bank receives an application. Before offering a loan, it must map out the customer's income and expenses, and if appropriate obtain information from a debt information company. If it takes the customer at their word without checking, it has not met the requirement.