Consumer Credit Act Switzerland (CCA) - rules, calculation and credit check explained in an understandable way
The Consumer Credit Act (KKG) forms the legal basis for the granting of personal loans in Switzerland. Every consumer loan granted to private individuals is subject to the rules of this law. The aim is to protect borrowers from over-indebtedness and at the same time ensure a transparent and fair credit market.
Many borrowers do not realise that almost every banking decision in Switzerland is made directly on the basis of the KKG. Particularly important here is the so-called Creditworthiness checkwhich is intended to ensure that a borrower is financially able to repay a loan.
With credxperts.ch we experience on a daily basis that many loan applications fail not because of insufficient income, but because the legal requirements are misjudged. Factors such as existing obligations, leasing contracts or high housing costs are often decisive for approval.
If you know the rules of the Consumer Credit Act, you can significantly increase your chances of a successful loan approval. For this reason, we explain in detail on this page:
- How the KKG works
- Which requirements banks check
- How creditworthiness is calculated
- which interest rates are permitted
- what legal protection mechanisms borrowers have
If you would like to check directly which credit options are currently available, you can use the Credit comparison on credxperts.ch utilise:
What is the Consumer Credit Act (KKG)?
The Consumer Credit Act was introduced to regulate the credit market more strictly and protect consumers. It obliges banks to check whether a borrower is financially able to repay the loan before granting it.
The law originally came into force in 2003 and has been amended several times since then. Of particular importance is the introduction of strict creditworthiness checks to prevent people from taking out loans that they will not be able to service in the long term.
The law applies to all classic consumer loans such as:
- Personal loans
- Car loans
- Instalment loans
- Debt rescheduling loans
- Leasing contracts
However, the Consumer Credit Act does not apply:
- Mortgages
- Business loans
- Credit cards with full monthly repayment
Compliance with these legal requirements is monitored by institutions such as the
ZEK monitored.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Objective of the Consumer Credit Act
The Consumer Credit Act pursues several important objectives:
- Protection against over-indebtedness
- Transparent credit terms
- Clear rules for banks
- Limitation of interest rates
- Property rights for borrowers
These legal requirements are intended to prevent borrowers from taking out loans that could jeopardise their financial situation in the long term.
At the same time, the law ensures that banks must make lending decisions according to clearly defined criteria.
Important rules of the Consumer Credit Act
The Consumer Credit Act contains several key provisions that every bank must take into account when granting loans.
Creditworthiness check
The most important rule of the KKG is the so-called creditworthiness test. Banks must ensure that a borrower is financially able to repay a loan.
Various factors are analysed in the process:
- Net income
- Housing costs
- Cost of living
- Insurances
- Taxes
- Existing loans
- Leasing contracts
A loan may only be granted if this check is positive.
Further topics on the Consumer Credit Act
The 36-month rule
A central speciality of Swiss credit law is the so-called 36-month rule.
Even if a loan runs for 84 months, for example, a borrower must theoretically be able to repay the loan within 36 months.
This rule ensures that banks calculate very conservatively.
Maximum interest rates for consumer loans
Another important component of the Consumer Credit Act is the limitation of interest rates.
The Federal Council sets the maximum permitted interest rate each year.
Overview of maximum interest rates as at March 2026
| Credit type | Maximum interest rate |
|---|---|
| Personal loan | approx. 11 % |
| Credit cards | approx. 13 % |
| Leasing | individual |
However, many banks offer significantly lower interest rates.
Current loan offers can be accessed via the Credit comparison on credxperts.ch be checked:
Creditworthiness check - how banks calculate
Banks prepare a so-called budget statement for every loan application.
This analyses how much money a borrower has left over after all monthly expenses.
Example budget calculation
| Income and expenses | Amount |
|---|---|
| Net income | 5'800 CHF |
| Rent | 1'600 CHF |
| Cost of living | 1'200 CHF |
| Insurances | 450 CHF |
| Taxes | 700 CHF |
| Disposable income | 1'850 CHF |
This disposable income determines whether a loan can be approved.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Sample calculation for a loan
Suppose a person applies for a loan for:
40'000 CHF
The bank must check whether this loan could be repaid within 36 months.
KKG calculation
40,000 CHF / 36 months
= CHF 1,111 per month
If only CHF 900 is available according to the household accounts, the bank is allowed to do not authorise.
Comparison of real rate vs KKG calculation
There is an important difference between the actual loan instalment and the statutory calculation.
| Loan amount | Runtime | real rate | KKG rate |
|---|---|---|---|
| 20'000 CHF | 84 months | 260 CHF | 555 CHF |
| 40'000 CHF | 84 months | 520 CHF | 1'111 CHF |
| 70'000 CHF | 84 months | 900 CHF | 1'944 CHF |
Many borrowers are surprised that banks check according to this stricter calculation.
Why loan applications are often rejected
Many people believe that a good income automatically leads to loan approval. In practice, however, many other factors play a role.
The most common reasons for refusal include
High housing costs
A high rent reduces the financial scope for a loan instalment.
Leasing contracts
Leases are recognised in full as a monthly obligation.
Negative ZEK entries
A negative entry in the
ZEK
can make lending considerably more difficult.
Short employment period
Many banks now require a minimum employment period of 12 to 24 months.
Typical credit options according to income
Credit options depend heavily on income.
Overview of possible loan amounts
| Net income | Typical credit line |
|---|---|
| 4'000 CHF | 10'000 - 25'000 CHF |
| 5'000 CHF | 20'000 - 40'000 CHF |
| 6'000 CHF | 40'000 - 70'000 CHF |
| 7'500 CHF | 70'000 - 120'000 CHF |
If you would like to calculate your potential loan amount more precisely, you can use our Use credit calculator:
Which loans fall under the KKG
The Consumer Credit Act applies to almost all consumer loans.
These include, among others:
- Personal loans
- Car loans
- Debt rescheduling loans
- Instalment loans
- Leasing contracts
On credxperts.ch we compare these credit offers and check the legal requirements at the same time.
Further information can be found on our page on the subject of personal loans.
Strategies for better credit approval
If you know the rules of the Consumer Credit Act, you can actively improve your credit authorisation.
Optimise runtime
A longer term reduces the monthly instalment.
Replace leasing
Leasing contracts have a significant negative impact on the budget.
Consolidate loans
Debt rescheduling can reduce the monthly burden.
Further information on debt rescheduling can be found here: Debt rescheduling
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Role of credit intermediaries
Many banks work together with specialised credit brokers.
The advantage of an intermediary is that several banks can be checked at the same time.
This often allows solutions to be found that would not be possible with a single bank.
With credxperts.ch we check Credit enquiries with various Swiss banks at the same time. This significantly increases the probability of a successful loan approval.
Start credit comparison
If you would like to know which credit offers are currently available, you can directly use our Credit comparison start.
The application only takes a few minutes and is non-binding.
FAQ on the Consumer Credit Act (KKG)
Frequently asked questions about the Consumer Credit Act (FAQ)
1 What does the Consumer Credit Act regulate in Switzerland?
The Consumer Credit Act regulates the granting of consumer credit to private individuals. It obliges banks to carry out a creditworthiness check and at the same time limits the maximum permitted interest rates.
2 Why do banks check creditworthiness?
Banks must ensure that borrowers can fulfil their obligations in the long term. The creditworthiness check prevents loans being granted that could lead to over-indebtedness.
3 What does the 36-month rule mean?
The 36-month rule states that a borrower must theoretically be able to repay a loan within 36 months - regardless of the actual term.
4 Which loans are covered by the Consumer Credit Act?
The Consumer Credit Act covers in particular personal loans, car loans, leasing agreements and debt rescheduling loans.
5 How high can the interest rate for loans be?
The maximum interest rate is set annually by the Federal Council and is currently around 11 % for cash loans. As at March 2026
6 Is every loan registered with the ZEK?
Yes, every consumer credit is
ZEK
reported.
7 Can a loan be refused despite good income?
Yes, factors such as high rental costs, leasing contracts or negative ZEK entries can lead to a loan being refused despite a good income.
8 How long does a credit check take?
An initial credit check is often carried out within a few hours. Payment can then be made 14 days after the contract date. This is the waiting period stipulated in the KKG. Loans of CHF 80,000 or more are not subject to this waiting period. They are therefore often regarded as instant loans, although instant loans are generally prohibited in Switzerland.
9 How much can a loan in Switzerland be?
Depending on income and creditworthiness, banks grant loans of up to around CHF 250,000.
10 What happens if a loan is refused?
In the event of a rejection, it may make sense to have the application reviewed by another bank or to reduce existing obligations.
11 What role does the ZEK play in loan applications?
The ZEK collects information on existing loans and payment problems. Banks use this data for risk assessment.
12 Is it possible to repay a loan early?
Yes, loans can be repaid in part or in full at any time.
13 How do leasing contracts affect creditworthiness?
Leasing instalments are fully taken into account as a monthly obligation and thus reduce the possible credit line.
14 Can self-employed people get a loan?
Yes, self-employed people can also obtain loans, but often have to provide additional proof of income.
15 How can I improve my credit approval?
The best strategies are:
- redeem existing loans
- Reduce leasing contracts
- Prove stable income situation
- Compare credit offers
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Understanding the Swiss Consumer Credit Act and correctly assessing credit opportunities
Anyone who knows the rules of the Consumer Credit Act will understand more quickly how banks in Switzerland in Switzerland check loans, why applications are approved or rejected and how creditworthiness ZEK entries and maximum possible loan amounts in practice.
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