General Questions
> Questions about the credit application
What does a personal loan cost?
Loans are offered by credit banks in Switzerland with an interest rate of 4.5% to 12%. With our credit calculator you can calculate the total costs and the monthly charge based on the loan amount, term and the annual percentage rate of charge. You can find more information, figures and legal information on the page: Credit Switzerland. The legal maximum interest rate in Switzerland is 12%.
Are there any credit brokerage fees?
No, credit brokerage fees are prohibited under Federal Law on Consumer Credit 221.214.1 Article 35. Beware of debt pitfall: rogue providers charge fees for debt restructuring. These online offers often give the impression that a credit is being offered, but in fact they push only contracts for debt restructuring with exorbitant fees.
What are the requirements for applying for a loan?
- Minimum age: 18 years. Maximum age: 64 years, whereby the loan must be repaid in full by the age of 69.
- Residency in Switzerland or Liechtenstein. Residency permit G possible if applicant has been a cross-border commuter for over 2 years.
- Swiss citizen or residence permit B/C/G (G permit at least 3 years and 3 years with the same employer).
- Regular income
- The borrower must be able to afford the loan.
- Borrowers are not over indebted by the loan.
- There are no negative entries at the IKO (legally required information centre for consumer credit).
What is the ZEK (Zentralstelle für Kreditinformation)?
ZEK is the Swiss central office for information regarding creditworthiness for companies, associations, cooperatives foundations as well as private individuals.
How can the chances of a positive credit decision be raised?
- Do not apply for a loan from several credit banks at the same time. Multiple applications to the ZEK will have a negative effect on your creditworthiness.
- Compare loans and use a certified credit expert who will work with you to find the best solution for your personal situation. With your approval, ONE credit application will be submitted to a credit bank
- Submit the loan application with your spouse as a 2nd applicant. This increases your creditworthiness and allows for more favourable lending rates. Attention: In the event of divorce, the 2nd borrower is remains liable.
What is the level of interest on loans based on?
The amount of interest on loans depends on personal creditworthiness. Every credit bank determines the creditworthiness (credit rating) of each credit applicant.
- The more regulated the monthly income, the better the credit rating (e.g. long-term employment with the same employer).
- Is there a previous negative credit history (a negative entries with the ZEK, prosecutions etc.)? Debt enforcement proceedings and entries with the ZEK reduce creditworthiness significantly
- A stable life situation. Older people, people who reside for a long time at the same address or people who have been married for a longer period of time benefit from a better internal credit rating ranking .
How do I get the cheapest loan possible?
Let a credit expert provide you with offers from various credit banks in a free consultation. Discuss all your options with the credit expert.
Loan Repayment: Can I replace an existing loan with a cheaper loan?
Yes, that Loans can be redeemed at any time and free of charge is a legal requirement in Switzerland. The borrower does not have to pay interest on amounts that are repaid early.
Can interest on loans be deducted from tax?
Yes, interest payments can be deducted from cantonal or federal tax.
Is it possible to increase the size of loan at a later date ?
Yes, talk to your credit bank or your credit specialist who arranged the loan for you.
Questions relating to the credit application
My credit application has been approved by the bank, when will I receive payment?
If the credit agreement has been signed, a 14-day statutory withdrawal period applies. During this period you can withdraw from the credit agreement without giving reasons. The loan will therefore be paid out after 2 weeks at the earliest. Watch out! If you see advertisements for "immediate" or "instant" loans, the offers are in most cases dubious and should be treated with caution (exception: loans from 80000 CHF and/or up to 3 months duration).
What documents do I need?
After your consultation and provided you are satisfied with the proposed loan offer you will require the following documents (under certain circumstances further documents may be required):
Loans for employees who are single
- Swiss passport / ID or residency permit
- The last 3 payslips
Loans for employees who are married
- Swiss passport/ID or residence permit (from both applicants)
- Last 3 pay slips (from both applicants, if they are employed)
- Loans for temporary employees:
- Swiss passport / ID or residency permit
- The last 3 payslips
- Loans for the self-employed
- Swiss passport / ID or residency permit
- Tax assessment or the last definitive tax invoice
- Kredit für AHV-IV Rentner:
- The last 3 AHV / IV payslips
- Pension disposition from the pension fund
- Swiss passport / ID or residency permit
Is it possible to apply for a loan together with the spouse?
Yes, a loan application from two borrowers increases the chances of obtaining a loan approval. Similarly, two borrowers have a positive effect on creditworthiness, and therefore increase the probability of a more favourable lending rate.
What size of loan is available to me?
The monthly instalments must be well within your monthly budget. Please note: Lending is prohibited if it leads to over-indebtedness (Federal Act against Unfair Competition, UWG Art. 3).
Security related Questions
> Questions about the credit application
What happens to my personal data after the credit enquiry?
Your personal data will be forwarded to one of our certified credit partners and used exclusively by them for your credit advice or credit offers.
Can I revoke the loan (withdraw from the loan agreement after signing it)?
According to the KKG, a withdrawal period of 14 days applies. (without having to provide a reason)
What happens to my current loan in case of unemployment, accident, disability or illness?
You bear the risk in the event of insolvency. It is possible to take out credit insurance. Raise this issue during your consultation and ask for suggested solutions.
What happens to my credit in the event of death?
Compulsory death insurance is included in most credit agreements at no extra charge. Talk to your credit specialist about this topic during your consultation.
Who finds out about my credit application?
Your credit enquiry will be treated confidentially and will be forwarded to our credit partners and your chosen credit bank respectively. The data will only be used for the consultation and credit application.