DLR Kredit was founded in 1960, and is therefore a relatively young financial services company. It was founded at the initiative of the organization known today as the Danish Bankers Association, and was a result of several years of deliberations on the availability and terms of credit in the Danish agricultural sector.

DLR was organized as an independent institution with an assembly of representatives as the governing body. DLR had its own legal framework (Act No. 278 of 7 July 1960 on a financing institute for farming and agriculture, etc.) and the exclusive right to provide mortgage loans based on issuing of bonds, in the range from 45 per cent to 70 per cent of the value of the property.

The exclusivity ended as 1 January 1999 and from 1 July 2000, DLR was included in the Danish Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act, and therefore regulated under the same terms as other mortgage banks. From 1 January 2001, DLR Kredit was transformed into a private limited company with local and regional financial institutions as its shareholders.

After the transformation, DLR expanded from solely offering loans to agriculture to including also urban trade property (private residential rental property, shared ownership property, office and business property, property related to trades and industry and social housing property). Subsequent business expansion encompasses mortgage loans to property in Greenland and owner occupied dwellings in the Faroe Islands.