Refinancing a loan in Switzerland This means: you pay off one or more existing loans with a new, more favourable loan. This is worth doing if your current interest rate is higher than what you could currently get given your credit rating – or if you want to combine several instalments into a single, lower monthly payment. credXperts compares several Swiss banks for you with a single enquiry: free of charge, with no obligation and without affecting your existing contracts until you’ve made your decision.

When is it worth consolidating your debts?

Debt restructuring is worthwhile in three typical situations:

  • Your interest rate is too high. Many loans were taken out at 9 to 11 %. Anyone who currently has a stable job, no debt enforcement proceedings and a well-managed budget can secure significantly lower rates from several banks – at credXperts, from 5.8 % for homeowners and from 6.9 % for tenants.
  • You pay in several instalments. Two or three loans, plus credit card or leasing instalments, are expensive and hard to keep track of. A single loan with one instalment is easier to plan for and often works out cheaper overall.
  • Your credit rating has improved. A higher income, a C permit instead of a B permit, small loans that have been paid off: any improvement in your circumstances can mean a lower interest rate – but only if you renegotiate the loan or refinance it.

Here’s how much you can save: a sample calculation

Let’s assume you still have a remaining debt of CHF 30,000 at an interest rate of 10.9 % and a remaining term of 48 months. The monthly instalment is around CHF 770, and the remaining interest costs are around CHF 7,100. If you refinance at 6.9 %, the instalment falls to around CHF 715 – and the interest costs to around CHF 4,400. Savings: around CHF 2,700 over the term of the loan, without having to pay for any longer. If you’d prefer to reduce your monthly repayments instead, extend the term to 60 months and pay around CHF 590 per month.

You can work out your personal transfer fee and your potential savings in just a minute using our Redemption calculator.

How debt restructuring works in Switzerland

  1. Enquire with your current bank about the transfer fee. The bank will tell you the amount outstanding as at the reference date. Under the Consumer Credit Act (KKG), you are entitled to repay a consumer loan early at any time and are entitled to a waiver of interest for the remaining term of the loan.
  2. Request a new quote. When you submit an enquiry to credXperts, we compare several banks and show you which bank will take on your loan and at what interest rate – We usually reply within 24 hours.
  3. The new bank will pay off the old loan directly. The new lender will transfer the transfer fee directly to your current bank. You will only be paid the difference if you increase the amount of your loan at the same time.
  4. One instalment, one contract. From the following month onwards, you will only pay the new, lower instalment.

Our team handles the entire process from start to finish – including liaising with your old and new banks. Find out more on the page Redeem loan.

Conditions for debt restructuring

The same criteria apply to debt restructuring as to a new personal loan. Banks check the following in particular:

  • Resident in Switzerland and aged between 18 and 65 (up to 70 at some banks)
  • Permanent employment, usually for at least three months, or, in the case of temporary employment, for at least twelve months with the same employer
  • Regular net income of around CHF 3,000 per month
  • No outstanding debt enforcement proceedings or certificates of loss
  • A C or B residence permit held for at least 24 months; a G permit held for at least 36 months whilst employed by the same employer
  • A positive budget under the KKG: the new instalment must be affordable within 36 months

Don’t quite meet one of the criteria? Get in touch anyway. We understand the differences between banks and can often find a solution – for example, through a Credit rating adjustment before the application.

Debt restructuring or increasing the loan amount?

If you need extra money, you have two options: to increase your existing loan with the same bank, or to transfer your loan to a new bank and increase the amount at the same time. Increasing the amount with the same bank is convenient, but the old interest rate remains the same. If you switch banks, the entire amount is reassessed – resulting in a lower interest rate if your credit rating has improved. We’ll work out the figures for both options for you.

Frequently asked questions about debt restructuring

Will there be a charge for repaying my old loan early?

In the case of consumer loans under the Consumer Credit Act (KKG), the answer is generally no: you only pay the interest accrued up to the cut-off date and the outstanding balance. Always request the redemption amount in writing.

Will debt restructuring affect my ZEK entry?

The old loan is reported to the ZEK as having been repaid, and the new loan is registered. The key thing is that all instalments have been paid on time – this is more likely to improve your credit profile, as you will have fewer outstanding commitments.

Can I consolidate several loans and credit card debts?

Yes. Debt consolidation is particularly suitable for combining several loans, lease payments or expensive credit card balances into a single loan with a single monthly repayment.

How long does debt restructuring take?

Provided all the necessary documents are submitted, you will usually receive a reply within 24 hours. The old loan will be repaid once the statutory 14-day cooling-off period has expired.

Is debt restructuring still worth it even if there is only a short time left on the loan?

The shorter the remaining term, the smaller the interest saving. If the remaining term is less than twelve months, refinancing is usually only worthwhile if you also wish to increase the loan amount or consolidate several instalments.

Check your eligibility for debt restructuring now

One enquiry, several banks, no obligation: Enquire about debt restructuring now, free of charge. credXperts is rated 4.88 out of 5 stars by customers.