Updated September 28, 2026 · BorrowCue Editorial Team
Discovery Bank vs Nykredit
Where Discovery Bank and Nykredit differ
| Compare |  Discovery Bank |  Nykredit |
|---|---|---|
| Term | 6 to 72 months | 120 monthsHigher |
| Arrangement fee | Once-off credit initiation fee set by National Credit Act guidelines (amount confirmed in offer), plus R69 monthly credit service fee | 0 DKK |
| Eligibility | 18 years or older, valid South African identity document, proof of residence not older than three months, proof of income | Must already be a BoligBank 360, BoligBank 365, Private Banking or Private Banking Elite customer and fund at least 20% of the price |
| Loan types | Personal, Credit line | Car, Secured |
| Loan amount | ZAR 15,000 to ZAR 500,000 | Not confirmed |
| Funding time | within 48 hours | Not confirmed |
| Credit needed | Good | Not confirmed |
Same on both: Credit check (Hard), Rate type (Variable), Lender type (Direct lender), Free early repayment (Yes), Use cases (Home improvement).
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Key differences
- Discovery Bank scores higher overall: 9.2 vs 9.1.
- Nykredit is available in 1 more country.
- Term is higher at Nykredit: 120 months vs 6 to 72 months.
- Support channels: only Nykredit offers Community.
- Loan types: only Discovery Bank offers Personal, Credit line.
- Loan types: only Nykredit offers Car, Secured.
Our verdict on each
Discovery Bank
Discovery Bank suits South African adults with a good credit record who want a personal loan or a revolving credit line from a direct lender, and it holds up well for anyone who plans to clear a loan early.
Nykredit
Nykredit suits Danish borrowers who already bank with the group and want a secured car loan or a home loan on the same relationship. The offer rests on a rate type of variable, an origination fee of 0 DKK and a maximum loan to value of 75%.
Score breakdown
| Area | Discovery Bank | Nykredit |
|---|---|---|
| Cost | 9.2 | Not confirmed |
| Offer | 9.1Higher | 8.8Rate type is variable, origination fee is 0 DKK, maximum loan to value is 75% and term is 120. |
| Trust | 9.2 | 9.2 |
Pick Discovery Bank if, pick Nykredit if
Pick Discovery Bank if offer matter most.
Pick Nykredit if term matter most.
Where they rank in our lists
| Ranking | Discovery Bank | Nykredit |
|---|---|---|
| Mortgages | 124 of 719 | 207 of 719 |
| Remortgage deals | 86 of 351 | 150 of 351 |
| Home improvement loans | 166 of 562 | 273 of 562 |
| Equity release | 6 of 32 | 11 of 32 |
Every fact side by side
| Fact | Discovery Bank | Nykredit |
|---|---|---|
| Features | Credit line | Not confirmed |
| Legal entity | Discovery Bank Limited | Nykredit Bank A/S |
| Headquarters | South Africa | Denmark |
| Founded | Not confirmed | 1985 |
| Support channels | Chat, Phone, Help centre | Phone, Chat, Help centre, CommunityCovers more |
Mortgages
| Fact | Discovery Bank | Nykredit |
|---|---|---|
| Fixed period | 30 years | 1 to 30 years |
| Maximum loan to value | 100%Higher | 75% |
| Product fee | ZAR 6,037.50 | Not confirmed |
| Purpose | Purchase, Remortgage, First time buyer, Equity releaseCovers more | Purchase, Remortgage, Equity release |
Where each stands against the rest
| Fact | Discovery Bank | Nykredit | Median |
|---|---|---|---|
| Loan amount | ZAR 15,000 to ZAR 500,000highest quarter | Not confirmed | ZAR 25,000 |
| Term | 6 to 72 monthsabove the median | 120 monthshighest quarter | 60 |
Median across 1005 listed lenders.
Pros and cons
Discovery Bank
Pros
- Free early repayment: settling a personal loan early adds no charge, which is true of 81.2% of the listings.
- Lending runs ZAR 15,000 to ZAR 500,000, well past Monzo Flex at £10,000 to £35,000 and Cashspace ES at €100 to €5,000.
- A personal loan and a revolving credit line sit with the same lender (personal and credit line), so a staged home improvement draws only what the work needs.
Cons
- A variable rate leaves the final cost open until rates move, and the field leans the other way at 80.5%.
- The credit check is hard and the record needed is good, so a thin file has to clear a full assessment before an offer.
- The arrangement fee adds a monthly credit service fee on top of the once-off credit initiation fee, so a small balance still carries a monthly charge.
Nykredit
Pros
- Car and secured lending under car and secured, with free early repayment on the basic car loan
- Origination fee of 0 DKK on the electric car loan, with a term of 120
- A direct lender rather than a broker, so pricing comes from direct lender itself
Cons
- Maximum loan to value of 75% ranks 246 of 293
- The stated purpose is purchase, remortgage and equity release, so lending centres on the home rather than general borrowing
- Eligibility starts with an existing BoligBank or Private Banking relationship, so an applicant has to move banking first
Who each suits
Discovery Bank
Who it suits
- South African adults with a good credit record who can show a valid identity document, recent proof of residence and proof of income.
- Borrowers funding home improvements who want a revolving credit line for staged work as well as a personal loan.
- Homebuyers, since lending covers purchase, remortgage and first time buyer and a home loan runs to 100%.
Who should look elsewhere
- Anyone after a small one-off sum: Cashspace ES runs €100 to €5,000 and Cashspace runs PHP 500 to PHP 25,000, both far below ZAR 15,000 to ZAR 500,000.
- Borrowers who need a fixed rate to plan ahead: Discovery Bank is variable while 80.5% of the listings are fixed.
- Borrowers outside a single market: the bank is based in South Africa, so Monzo Flex at £10,000 to £35,000 suits a sterling customer better.
Nykredit
Who it suits
- Drivers who already hold a BoligBank or a Private Banking account and want a car loan
- Homebuyers and movers who fund a deposit themselves and want one bank for the mortgage and the car
- Households planning home improvement work who want a secured loan against the property
Who should look elsewhere
- Borrowers with thin deposits, since lending stops at 75%
- Applicants with poor credit, as the check is hard
- Readers wanting a fixed rate, since the stated rate type is variable
Current offers
Discovery Bank
Current offer
Bonus
Join Discovery Bank and get 75% off Virgin Active gym fees: 75% off Virgin Active gym fees
Add Vitality; applies to a local club membership; terms and conditions apply
Source, checked September 26, 2026
Bonus
Save up to 5% on your monthly personal loan repayments: up to 5% interest rate discount on personal loans
Limited offer; discount set by Vitality Money status at application and fixed for the full loan term; terms and conditions apply
Source, checked September 26, 2026
Nykredit
Current offer
Bonus
Bonus rate on BoligOpsparing before buying your first home: 5% bonus interest on the first DKK 300,000 of BoligOpsparing
Saving in a BoligOpsparing before buying your first home; must move your mortgage to Nykredit
Source, checked September 26, 2026
Country by country
| Country | Discovery Bank | Nykredit |
|---|---|---|
| Denmark | No | Yes |
| Greenland | No | Yes |
| South Africa | Yes | No |
Questions about each
Discovery Bank
Who regulates Discovery Bank, and does that protect the loan?+
Discovery Bank is authorised as an authorised financial services provider by the Financial Services Conduct Authority under FSP48657, and registered as a credit provider with the National Credit Regulator under NCRCP9997. Lending is direct, so the bank is the counterparty on the balance. Ask the bank directly what applies to a loan in good standing.
How quickly is a Discovery Bank personal loan funded?+
Money is released within 48 hours of the application being approved. Terms run 6 to 72 and the amount runs ZAR 15,000 to ZAR 500,000, so a home improvement can be covered in one draw once the paperwork is in. Applications ask for proof of income and recent proof of residence, which adds handling time before the clock starts.
Nykredit
Who can apply for the Nykredit electric car loan?+
Eligibility is limited to people who already bank with the group as a BoligBank, Private Banking or Private Banking Elite customer, and who put up a deposit themselves before the rest of the price. The group dates back to 1985 and is based in Denmark.
What does the car loan cost?+
The origination fee is 0 DKK on the electric car loan, with a term of 120. The rate is variable rather than fixed, so the rate type listed is variable and the balance can move with market rates.