Loan application for a loan repayment in Switzerland
Over time, many borrowers realise that their existing loan is no longer ideal. The interest rates have changed, the financial situation has improved or several loans are to be merged.
In such cases, a Loan repayment can make sense. This involves replacing an existing loan with a new loan - often with better conditions or a different term.
Basically, this is a new credit applicationwhere part of the loan amount is used to repay the previous loan in full.
If you would like to find out more about the loan process, you can find more information on the Credit application in Switzerland a complete overview.
Whether you are applying for a personal loan, repaying a credit card or adjusting your credit rating - our credXperts can advise you on all credit matters. Calculate and apply for your consumer loan today.
What does a loan cancellation mean?
A loan redemption means that an existing loan is repaid in full, usually with a new loan.
Typical reasons for cancelling a loan are
- Reduction in interest costs
- Consolidation of several loans
- Adjustment of the monthly instalment
- Better credit conditions
Many borrowers use a loan repayment to optimise their financial situation.
If you would like to check whether a replacement makes sense for you, you can request a Have your credit application checked.
When a loan repayment is worthwhile
A loan repayment is particularly worthwhile in the following situations.
Lower interest rates
If the new loan offers a significantly lower interest rate, considerable interest costs can be saved in the long term.
Consolidate several loans
Many borrowers have several smaller loans or credit cards. These can be merged into a new loan.
Adjustment of the runtime
A new term can reduce the monthly instalment or shorten the overall term.
If you want to find out whether a replacement makes sense, you can directly request a Start credit application online.
How does a loan application for a loan repayment work?
The process of cancelling a loan is similar to a normal loan application.
Typical procedure:
- Calculate loan amount
- Apply for a loan
- Credit check by the bank
- Receive credit offer
- Repayment of the existing loan
Part of the new loan is used to pay off the old loan in full.
If you would like to know what options are available for your situation, you can request a Submit a non-binding loan application.
Whether you are applying for a personal loan, repaying a credit card or adjusting your credit rating - our credXperts can advise you on all credit matters. Calculate and apply for your consumer loan today.
Calculate loan repayment - compare interest costs
Before you redeem a loan, you should calculate whether it is actually worth redeeming it.
Important factors are:
- Remaining residual debt
- Current interest rate
- New interest rate
- Remaining term
A small difference in interest rates can have a major impact on total costs over several years.
With the Redemption calculator for loans you can quickly calculate how much interest you could save by redeeming your loan.
Repaying a loan - options in Switzerland
In Switzerland, it is generally possible to redeem a loan. Many loan agreements allow early repayment.
The Consumer Credit Act enables borrowers to repay loans early or reschedule them.
Further information on this topic can be found on the page Repaying a loan in Switzerland.
There you can find out what options are available and what you should look out for.
Requirements for a loan repayment
Certain conditions must be met before a loan can be repaid.
Sufficient income
The bank checks whether the income is sufficient to cover the new loan.
Positive credit rating
A credit check is also carried out when a loan is repaid.
Affordability of the new loan instalment
The monthly instalment must be affordable in the long term.
If you would like to know whether your situation is suitable, you can request a Have your credit application checked now.
Advantages of a loan repayment
Replacing a loan can have several advantages.
Reduce interest costs
A lower interest rate can significantly reduce the overall costs.
Improve overview of finances
Several loans can be combined into a single monthly instalment.
Optimise runtime
The term can be adapted to the current financial situation.
If you would like to check different options, you can use your Start credit application via credxperts.
Whether you are applying for a personal loan, repaying a credit card or adjusting your credit rating - our credXperts can advise you on all credit matters. Calculate and apply for your consumer loan today.
Common mistakes when repaying a loan
A number of points should be taken into account when redeeming a loan.
Typical errors are
- Redemption without interest rate comparison
- Incorrect calculation of the residual debt
- Fees not recognised
- Too short comparison of different offers
It can therefore make sense to compare several loan offers.
With the Loan repayment calculator you can quickly find out whether debt rescheduling is worthwhile.
Why a loan comparison makes sense for a redemption
Many borrowers turn to their existing bank first. However, they do not always offer the best conditions.
A comparison of several banks can bring the following advantages:
- better interest rates
- Larger selection of credit offers
- Higher chances of approval
- Customised credit solutions
If you would like to check various options, you can directly request a Apply for a loan online.
Loan application for loan repayment
Replacing a loan can be an effective way of reducing interest costs and optimising your own financial situation. A detailed analysis is particularly worthwhile if interest rates have improved or several loans are to be combined.
With a loan comparison and careful calculation, borrowers can often realise considerable savings.
If you would like to know what options are available for your situation, you can contact us at any time. Start credit application without obligation.
FAQ - Loan application for loan repayment
Can I redeem an existing loan at any time?
In Switzerland, early loan repayment is generally possible. Many loan agreements allow full repayment before the end of the term. However, there may be certain conditions depending on the contract.
When is a loan repayment particularly worthwhile?
Replacing a loan is particularly worthwhile if the new loan has a significantly lower interest rate or if several existing loans can be combined.
How do you calculate the savings from a loan repayment?
The savings depend on several factors, including the interest rate, remaining term and remaining debt. Borrowers can use a repayment calculator to quickly estimate how much interest can be saved by rescheduling their debt.
Do I have to submit a new loan application for a loan repayment?
Yes, in most cases a new loan application is submitted. The bank will check your income, creditworthiness and affordability of the loan instalment again.
Can a loan repayment be refused?
Yes, if your creditworthiness or income is not sufficient, a loan repayment may be rejected. In such cases, it can be useful to compare different banks.
Whether you are applying for a personal loan, repaying a credit card or adjusting your credit rating - our credXperts can advise you on all credit matters. Calculate and apply for your consumer loan today.
Everything you need to know about applying for a loan in Switzerland
Before you apply for a loan, it is worth knowing the most important requirements, documents and special cases. The following topics will help you prepare your loan application in the best possible way and improve your chances of being granted a loan in Switzerland.