The personal loan is a bank loan for private consumers. It does not apply to tradesmen or companies. A personal or consumer loan can be used in a variety of ways to finance technical equipment, a craftsman's bill etc., but in principle always purely for private use. To get a loan granted after a personal loan comparison and consultation the applicant must show a certain level of creditworthiness. The individual banks offer mostly quite similar, but in some cases quite different conditions.
Get an overview of the loans on offer
The best way to get an overview is to use a loan comparison. As a rule, a permanent job, permanent residence or material securities must be presented. Bank loans for private use are generally subject to interest. The expected monthly expenses can be calculated with a credit calculator. The amount of interest depends on the risk for the bank. As a rule of thumb, the higher the default risk for the bank, the higher the interest rate. Therefore, it is worthwhile to make a comparison in advance and obtain individual advice from credit specialists, also with regard to the specific purpose of the loan.
Possible uses of a personal loan
- Loan for dental treatment
- To repay private debts
- To clear an overdrawn bank account (replace high interest rates with low ones)
- Financing cosmetic surgery
- To realise your dreams
- Loan for the purpose of balancing your credit card account (through lower interest rates)
It is worth knowing, for example, that online loans in Switzerland are often offered by credit banks at lower rates. However, these cheaper offers are often more difficult to obtain. The rule is: the cheaper a personal loan, the stricter the criteria for granting a loan. It is therefore worth checking in advance whether your creditworthiness is sufficient for a provider to grant the loan. If a credit application is rejected, this leads to a negative entry in the ZEK, the Swiss central office for creditworthiness information.
The shortest possible terms should be chosen for personal loans to avoid higher costs for long repayment periods. It is also good to know that personal loans are quite easy to terminate and that there is no interest to be paid on the unused credit period in the event of early repayment. Switching to cheaper providers can be worthwhile in individual cases (consult our credit specialists). In Switzerland, the loan is subject to a waiting period of at least two weeks before it is paid out. Instant loans are not offered; this is prohibited by the Consumer Credit Act. Most loans are transferred after a waiting period of about 14 days. For statistical purposes, it remains to be said that in 2013 almost 32 percent of the Swiss population will live in a household with a loan in the form of leasing, consumer credit, payment in instalments or indebtedness to family or friends.