Refinancing and increasing your loan in French-speaking Switzerland and Ticino
This page explains loan refinancing for French- and Italian-speaking customers. The principle is that a new, cheaper loan replaces one or more existing loans. The new bank transfers the refinancing amount directly to the old bank; if you wish, the amount can be increased at the same time. Under the Consumer Credit Act, you are entitled to repay a loan early at any time and will then not owe any interest for the remaining term. With some banks, repayment is only possible after the loan has been outstanding for 13 months.
Example: Outstanding balance of CHF 25,000 over 48 months. At 9.9 %, the interest amounts to around CHF 5,378; at 6.9 %, it is around CHF 3,680. The refinancing therefore saves around CHF 1,700 and CHF 35 per month.