Maximum loan amount in Switzerland - how much credit is possible?
Many borrowers ask themselves what the maximum amount of a loan in Switzerland can be. The answer is not so simple because, unlike in other countries, there is no fixed legal maximum amount.
In Switzerland, the amount of a consumer loan depends mainly on the Creditworthiness off. Banks check whether a borrower is financially able to repay the loan.
The basis of this audit is the Swiss Consumer Credit Act (KKG).
How banks calculate the maximum loan amount
With every loan application, banks create a so-called Budget account. Income and expenditure are compared.
The most important factors are
- Net income
- Rental costs
- Cost of living
- Health insurance
- Insurances
- Existing loans
- Leasing contracts
This calculation shows how much money is available each month for a loan instalment.
More about this calculation find out here
Further information on the Consumer Credit Act
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.
The 36-month rule of the Consumer Credit Act
One of the most important rules in Swiss credit law is the so-called 36-month rule.
This states that a borrower must theoretically be able to repay the loan within 36 months to repayeven if the actual running time can be significantly longer.
This conservative calculation ensures that borrowers are not excessively burdened.
One Detailed explanation of this rule you can find here
Example loan calculation according to KKG
A customer would like a loan for 60'000 CHF record.
KKG calculation:
60’000 / 36
= 1'667 CHF
The budget calculation must therefore show that at least CHF 1,667 is available each month.
If only CHF 1,300 is available, the bank may not authorise this loan. The application however, will not be rejected. If the budget for the desired loan amount does not materialise, the bank will submit an offer for the amount that is available according to the Consumer Credit Act is permissible.
Difference between real rate and KKG calculation
Many borrowers are surprised that banks work with a stricter calculation than the actual loan instalment.
Example loan comparison
| 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 |
| 60'000 CHF | 84 months | 780 CHF | 1'667 CHF |
| 80,000 CHF | 84 months | 1'040 CHF | 2'222 CHF |
This calculation is laid down in the Consumer Credit Act.
Find out more here on our Consumer Credit Act Page.
Maximum loan amount according to income
The possible loan depends heavily on your income.
Overview of possible loan amounts
| Net income | Possible credit |
|---|---|
| 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 |
| 9'000 CHF | 120'000 - 200'000 CHF |
These values are only examples, as each bank uses its own calculation models.
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.
Example budget calculation
A borrower earns 6'800 CHF net.
Budget account
| Position | Amount |
|---|---|
| Rent | 1'900 CHF |
| Cost of living | 1'200 CHF |
| Health insurance | 450 CHF |
| Insurances | 200 CHF |
| Taxes | 850 CHF |
| Disposable income | 2'200 CHF |
With this budget calculation, a loan of around 70,000 CHF to 80,000 CHF be possible.
Why banks offer different loan amounts
Not every bank assesses loan applications in the same way. Some banks are more conservative, others more flexible.
Differences may arise due to
- Internal risk models
- Different calculation of the cost of living
- Valuation of leasing contracts
- Valuation of existing loans
For this reason, a loan may be rejected by one bank and approved by another.
Why credxperts.ch can often facilitate higher loan amounts
With credxperts.ch our credit experts analyse each enquiry individually.
We check, among other things:
- Which banks are suitable for certain situations
- how existing obligations can be optimised
- how the budget accounts can be improved
As we do not use credit calculations according to the Consumer Credit Act Switzerland specialised arewe can often achieve better loan offers and higher approval rates.
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.
How to increase your maximum loan amount
There are several ways to increase the possible loan amount.
Replace leasing
Leasing agreements significantly reduce creditworthiness.
Rescheduling existing loans
The monthly burden can be reduced through debt rescheduling.
Optimise runtime
A longer term reduces the monthly instalment.
Calculate credit options
If you would like to know how much a possible loan could be, you can directly use our Budget calculator utilise.
Or directly a Credit comparison Start
FAQ - maximum credit Switzerland
What is the maximum loan amount in Switzerland?
Many banks grant consumer loans up to around 250,000 CHFprovided that the creditworthiness is sufficient.
What does the loan amount depend on?
The amount depends on income, expenses, existing obligations and the household budget.
Why do banks calculate with 36 months?
This rule is intended to ensure that borrowers are not overburdened financially.
Can I have several loans at the same time?
Yes, as long as the creditworthiness is sufficient.
Can you increase your loan amount?
Yes, for example through the redemption of leasing contracts or Debt rescheduling existing loans.
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.
Other topics relating to credit checks and loan applications
Consumer Credit Act Switzerland
All legal regulations for credit checks according to KKG.
Calculate creditworthiness
How banks check income and expenses.
ZEK and credit
Significance of ZEK entries for credit applications.
Maximum loan amount
How much credit is possible in Switzerland.
Credit comparison Switzerland
Compare current credit offers.
Apply for a loan
Step by step to the loan application.
Credit application Switzerland
Everything you need to know about the credit application process.