Frequently asked questions & answers

There is no single ‘best’ bank for a loan, as every bank has a different risk policy. It is important that the bank in question is the right fit for you. It is equally important that you meet the bank’s eligibility criteria when applying for a loan: all banks assess each customer’s creditworthiness on a case-by-case basis.

 

For this reason, it is important to know what criteria you, as a borrower, must meet in order for your loan application to be approved. Thanks to our many years of experience, we can tell you exactly which bank offers you a realistic chance of having your loan application approved. Please note: Submitting a direct application to the wrong bank can result in your application being rejected. This rejection may remain on record for at least two years and lead to further rejections.

To apply for a personal loan in Switzerland, you must meet the following criteria when submitting your loan application:

• Minimum age 18 years, maximum age 70 years
• Resident in Switzerland, the Principality of Liechtenstein or cross-border commuter
• Swiss citizenship or residence permit C, residence permit B, residence permit G, residence permit L
• Regulated income

Loans are currently granted from CHF 1000 to around CHF 250,000. However, higher loan amounts are also possible. The actual amount approved by the bank for a loan depends on various factors. The average loan amount in Switzerland is currently around CHF 25,000.

A lease is what is known as a three-way transaction between the car dealership, the lessor (leasing company) and the lessee (vehicle owner). The leasing company purchases the car from the dealership. It is therefore the owner of the vehicle and imposes certain restrictions – such as mileage limits and comprehensive insurance. The lessee pays for the use of the car through their lease payments over a specified period. However, they bear all maintenance costs, just as someone who owns a car and pays for it in cash or via Credit has paid.

 

A consumer loan is not tied to a specific purpose: if you buy your car with a loan, you own the vehicle from day one and are free to do with it as you please. You can also sell it at any time. Now Calculate consumer credit.

 

Another difference between leasing and the Car loan involves early termination of the contract: anyone who terminates a lease agreement early must bear additional costs and penalty interest. In the event of early termination of a loan agreement, you are entitled to a waiver of interest. Furthermore, a lease is not tax-deductible. A loan, however, is – firstly as loan interest deducted from your income, and secondly as a loan debt deducted from your assets.

 

Car loan or lease? Find out more here.

It is always worth refinancing an existing loan with a high interest rate through a bank offering a lower rate. You can transfer the higher-interest loan to a bank offering a lower rate at any time, along with the outstanding daily balance. No penalty interest may be charged in this process.

 

Once the loan has been transferred to a new, cheaper bank, you will repay the loan at the new bank’s lower interest rate.

 

You can find out more about mortgage refinancing here.

When the bank calculates your borrowing limit, it takes the following points into account:

 

• Marital status: For single people, the bank deducts CHF 1,200 from the potential loan budget to cover basic living costs; for married people, the deduction is CHF 1,700.
• Ongoing financial commitments: Ongoing financial commitments are also important when calculating your borrowing budget. For example, if you have an ongoing lease or are paying off other loans. Or if you have to settle credit card bills where your credit limit exceeds CHF 3,000.
• Health insurance premiums: The more people living in the same household, the higher the total health insurance premiums. This reduces the potential borrowing budget.
• Taxes: The bank calculates the tax liability based on marital status, canton and place of residence.
• Rent: When calculating the rent, some banks assume a minimum rent of CHF 1,000. This also applies if prospective borrowers are still living with their parents.
• Children: If children also live in the same household, banks take this into account when calculating your borrowing capacity. This relates to a child’s basic needs.
• Commuting allowance: The journey from home to work and back can, in some circumstances, be a significant financial burden. That is why a commuting allowance is factored into the calculation of a potential loan budget.
• Maintenance payments: If you are required to pay maintenance, this will also affect your borrowing capacity.

 

Banks calculate your borrowing limit so that, if you take out a loan, you can cover your basic living expenses without getting into debt.

 

Loan budget calculator: Work out your credit limit now.

Depending on your marital status, the bank deducts a basic allowance when calculating your borrowing limit. The basic allowance covers the costs you incur in your day-to-day life.

 

You can find further information on how to calculate your borrowing budget here.

To work out a borrowing limit that protects you from becoming over-indebted, banks also take your tax liability into account. They calculate your tax based on your place of residence, canton and marital status.

 

Try our loan budget calculator and work out your borrowing limit.

This calculation is carried out in accordance with Consumer Credit Act (KKG). This stipulates that you must be able to repay a loan within three years. You are, however, free to choose any loan term you wish. The 36 months are one of several factors taken into account when calculating your borrowing limit.

 

Everything you need to know about calculating your loan budget can be found here.

If children live in the same household, they are taken into account when calculating your borrowing budget. The deduction made by the bank should cover a child’s basic needs.

In addition to food, a child’s basic needs also include the following expenses: clothes, club or sports fees, subscription costs, etc. As the level of these costs varies depending on age, banks use a flat-rate amount based on age to calculate your credit limit.

To ensure that this process runs smoothly, we would ask you to contact us via e-mail or Credit application to contact.

 

The process works as follows: First, we obtain a loan offer from the new bank, as well as approval for the loan transfer. Once the contract is activated, the new bank will then settle the outstanding debt with your current bank. The contractual relationship with your old bank ends once your existing loan debt has been transferred in full.

 

Repaying your loan early: You can find more information here.

A one-off payment enables you to save on interest costs. This is because you repay your current loan in monthly instalments. As interest costs are calculated on a monthly basis, a one-off payment is worthwhile at any time. This is particularly true at the start of the term: if you make a one-off payment towards your loan balance at this stage, it will reduce your interest costs.

 

Would you like to find out more about how a one-off payment might affect your existing loan? If so, please use our Payback period calculator! You’ll be amazed at how much you can save on your interest costs.

The interest rate on a loan is the result of a risk assessment carried out by the person who takes out a Loan applied for. This list sets out the factors taken into account when calculating interest:

 

• Your age: Very young people or those of retirement age face greater difficulties in getting a loan approved.
• Your income: The higher your income, the higher your credit rating.
• Your length of residence in the same place: The longer you live at the same address, the better your chances of securing a low interest rate on a loan.
• Your employment with the same employer: The length of time you have been employed by the same employer also affects the calculation of your loan interest rates.
• Your marital status: Depending on whether you are single, married, divorced or widowed, this may affect the interest rate on your loan.
• Your living situation: If you own your own home, your credit score in credit reference databases will be different from that of someone who rents.
• Your residence permit: The longer you have been living in Switzerland, the better the interest rates you will be offered.
• Your experience with previous loans or leases: If you have repaid previous loans or leases satisfactorily, you have nothing to worry about.

 

Generally speaking, the more stable your financial situation is, the lower the risk of default for a bank. Consequently, the bank will offer you lower interest rates on loans.

 

It’s definitely worth comparing interest rates. Find out more here.

No, you can repay or refinance your current loan without any concerns. This is also the case in the Consumer Credit Act (KKG) specified, as this extract shows: The KKG expressly permits early repayment of the loan. In such cases, consumers are entitled to a waiver of interest on the loan for the period during which the loan was not utilised, and to a reasonable reduction in the remaining costs (Art. 17(2) KKG).

 

If you wish to repay your loan early, please read our blog post.

As a rule, the interest rate on a credit card ranges from 11 % to 15 % – depending on the credit card issuer. Anyone who uses the instalment payment option will pay late payment interest at this rate. This is much higher than if you were to pay off your credit card debt with a personal loan.

 

One Replacement of the credit card It certainly pays off here, as even the highest possible interest rate on a personal loan is 9.95 %, which is lower than the interest rate charged by credit card companies. Thanks to our many years’ experience in this field, we know exactly how and where it’s worth paying off a credit card. Contact us for a no-obligation enquiry and save yourself from paying excessive interest: +41 44 244 34 00 / info@credxperts.ch.

 

Do you also have a loan that you’d like to pay off? Find out more here.

Unfortunately, it is the case that there are almost no mortgage lenders willing to provide financing for properties abroad. This is due to the risk policies of mortgage lenders: they are reluctant to finance properties abroad. You can get round this problem by taking out a consumer loan. Here, too, the amount of finance you require for your property must be in line with your budget.

 

Calculate your mortgage here.

Yes, any time! You are not bound by the term agreed in the contract. There are various options for repaying your personal loan early:

 

• Faster loan repayment by increasing your minimum instalment
• Partial repayment of the loan by transferring a larger sum
• Settlement/repayment of the outstanding loan amount

 

Important to know: The banks charge interest only for the period the loan is in use and on the outstanding balance. This means that if you repay your personal loan early, you will always benefit from a reduction in interest.

 

Use our transfer fee calculator to see how much you could save.

Yes, you can deduct the loan debt from your assets and the interest paid from your taxable income.

The ZEK is the Central Credit Information Bureau. It is the Swiss central register for creditworthiness information relating to credit transactions involving individuals and legal entities. It records both positive and negative reports on applicants for loans, leases and credit cards. It also records the obligations and creditworthiness of borrowers, lessees and cardholders. Banks communicate with one another anonymously using codes to exchange information on payment behaviour. The following are the most common codes:

 

• ZEK Code 01: Open credit application
• ZEK Code 02: Regular instalments
• ZEK Code 03: Delayed payment with reminders, retention period 3 years, negative entry
• ZEK Code 04: Collection measures/enforcement, retention period 5 years, negative entry
• ZEK Code 05: Partial or total loss, retention period 5 years, no more credit possible
• ZEK Code 21: Blocked credit card, retention period 5 years, negative entry
• ZEK Code 22: Ongoing collection measures, retention period 5 years, negative entry
• ZEK Code 23: Partial or total loss, retention period 5 years, no more credit possible

 

Access to the database is restricted to authorised members and third-party firms commissioned by them and authorised by the ZEK. A reason for the enquiry must be stated for every query. However, no specific proof of interest is required. Database enquiries are carried out in response to a specific request. Alternatively, if key assessment criteria for registered individuals change, enquiries are made automatically to the members concerned. Database enquiries are subject to a fee.

 

Members are required to carry out a background check before assessing loan applications. In all other respects, such checks are voluntary. A typical voluntary check is carried out to verify any contractual offers, the member’s own current contracts, or the owner of a legal entity.

 

Further information on the ZEK can be found here.

The credit agency CRIF reliably identifies individuals and companies. It provides information relevant to creditworthiness on the basis of market-leading data. CRIF thus offers not only banks, insurance companies and leasing companies, but also retailers, e-commerce and telecoms providers an effective tool to support the credit application process.

Before granting a loan, the bank factors in generous lump sums to offset any higher expenses that may arise during the term of the agreement. Some banks allow for budget adjustments – for example, in relation to health insurance premiums or a commuting allowance.

 

You can find further information on how to calculate your borrowing budget here.

Certain banks assume a minimum rent of CHF 1,000 when assessing a loan application. This is done for security reasons, in case a person applying for a loan moves house during the term of the loan. In this case, there may also be a Rent deposit loan become relevant.

 

If someone is still living with their parents when applying for a loan, banks will base their calculations on a minimum rent or a reference rent. In such cases, the choice of bank can be crucial to securing the loan.

 

With our credit advice, you can increase your chances of being granted a loan. Start your loan application now or get in touch with us directly: +41 44 244 34 00 / info@credxperts.ch.

When you apply for a loan in Switzerland, the banks check your credit limit or creditworthiness. To ensure that you do not become over-indebted by taking out a loan, the banks deliberately adopt a more cautious approach. Of course, they are also acting in their own interests: by calculating the loan budget conservatively, the banks minimise losses resulting from loan defaults.

 

You can find out more using our loan budget calculator.

The expenses are totalled when applying for a loan, as the household is fundamentally managed together. The bank adds up your joint income and costs when calculating your credit limit. Incidentally, this is also a requirement of the Consumer Credit Act (KKG). This includes joint expenses for rent, health insurance and taxes.

Yes, you can at any time repay the existing loan. Either using your own funds by paying off your loan early, or by refinancing with another bank, which will take over your loan from your current bank.

 

To ensure you can successfully pay off a loan, your borrowing budget must, in accordance with Consumer Credit Act (KKG) be met, i.e. you must be eligible for credit and have a good credit rating. The loan is repaid either directly by the new bank or by transferring the outstanding loan balance.

 

You can find out more about loan refinancing here.

Currently, the interest rate range at traditional lending banks is between 4.4 % and 9.95 %. Crowdfunding platforms offer interest rates starting at 3.5 % for loan applications. However, these platforms still charge an annual service fee, which you should bear in mind when taking out a loan. Furthermore, not all crowdfunding platforms take into account the interest waiver in the event of a early repayment of your loan. So the utmost caution is required here.

 

If you have any questions about this, our credit advisers will be happy to help. Please call us or write to us: +41 44 244 34 00 / info@credxperts.ch.

You can only save on interest costs by amending your contract or making a one-off payment. You can do this with your current bank or by switching to another bank if your current bank does not offer lower interest rates.

Would you like more information about your potential savings? Please also take a look at our page on Interest rate comparison . Or simply get in touch with us: +41 44 244 34 00 / info@credxperts.ch.