Swiss Loans - Legal aspects, facts & figures

Credit in Switzerland: Personal loans in detail

A personal loan provides customers with a method of financing planned as well as unscheduled expenditure. Swiss Loans are also used to bridge temporary financial difficulties. The entailed costs are determined by the bank and characterised by monthly instalments or monthly payments. However, there are also loans with more flexible repayment conditions. The costs of the interest on the loan can be considerable and can be as high as 10 %. It is therefore advisable to compare loans using our loan calculator and to consult a certified credit specialist.

Swiss credit - creditworthiness checks

If consumers wish to take out a loan in Switzerland, their creditworthiness is checked first. On the one hand, the creditworthiness assessment provides the bank with some security, but also protects the consumer from over-indebtedness. The assessment not only checks the creditworthiness but also the credit rating. For this purpose, information on income and general financial circumstances as well as information on financial obligations are evaluated.

Consumer protection

In Switzerland, consumers are protected by the Federal Law for consumer credit. These contractual guidelines prevent borrowers from becoming financially overburdened and overindebted through a credit agreement. To this end, the Central Office for Credit Information (ZEK for short) checks information on the financial circumstances of potential borrowers. If, for example, the customer's bank cards are frequently blocked or payment deadlines are not met, the bank decision could be negative. Providing the information on income, tax and the minimum subsistence level dictated by the canton turn out positive, solvent borrowers are granted the loan.

Since 1 January 2016, there are no longer immediate loans in Switzerland (exception: up to 3 months term and/or from a loan amount of CHF 80000). Any borrower may withdraw from the contract without giving reasons within 14 days of signing the credit application (KKG 16 para. 1).

The legal situation - Credit Switzerland

From a legal point of view, a Swiss personal loan is a bilateral contractual relationship; the loan agreement is between the borrower (consumer) and the lender (bank).

The borrower's motive is to procure financial resources to finance certain acquisitions or projects or for permanent refinancing as an operating loan. The lender's motive is to earn interest by granting the loan.

The borrower thus has the aim of realising a certain project, which is not possible with just his own financial resources. The lender's aim is to lend money against interest and the security of repayment.

Statistical figures

Loans in Switzerland:Some interesting statistics deal with loans in Switzerland. For example, the Association for the Management of a Central Office for Credit Information (ZEK) and the Swiss National Bank (SNB) present statistical figures on the granting of personal loans. In doing so, ZEK records the consumer credits of ZEK members in the area of cash, instalment, fixed and current account credits. Since 2005, the SNB has been dealing with consumer credit in accordance with Article 1 of the Federal Consumer Credit Act, or KKG for short. The statistics are representative and reflect the traditional credit business with the largest share of consumer loans.

Jahr 2020

2020 lag das Volumen der Konsumkreditverträge bei 3.68 Milliarden CHF. Die Anzahl der laufenden Konsumkredite nahm im Vergleich zum Vorjahr um etwa 17,0 Prozent auf etwa 113.281 Kreditverträge ab (im Vorjahr etwa 136.589 Verträge).

2020 wurden 30.8 Prozent aller Bonitätsanfragen abgelehnt, im Vorjahr waren es noch 32.5 Prozent.

Jahr 2019

2019 lag das Volumen der Konsumkreditverträge bei 4.45 Milliarden CHF. Die Anzahl der laufenden Konsumkredite nahm im Vergleich zum Vorjahr um etwa 2,4 Prozent auf etwa 136.589 Kreditverträge ab (im Vorjahr etwa 139.999 Verträge).

In 2019, 32.5 percent of all credit rating queries were rejected, compared to 29.7 percent in the previous year.

Jahr 2018

2018 lag das Volumen der Konsumkreditverträge bei 4.44 Milliarden CHF. Die Anzahl der laufenden Konsumkredite nahm im Vergleich zum Vorjahr um etwa 0,2 Prozent auf etwa 139.666 Kreditverträge zu (im Vorjahr etwa 139.366 Verträge).

In 2018, 29.7 percent of all credit rating requests were rejected, compared to 28.5 percent in the previous year.

Jahr 2017

2017 lag das Volumen der Konsumkreditverträge bei 4.199 Milliarden CHF. Die Anzahl der laufenden Konsumkredite nahm im Vergleich zum Vorjahr um etwa 2,4 Prozent auf etwa 139.666 Kreditverträge zu (im Vorjahr etwa 136.555 Verträge).

In 2017, 28.5 percent of all credit rating queries were rejected, compared to 30.1 percent in the previous year.

Credit Switzerland

Swiss Loans - Facts and figures