There are many reasons to take out a personal loan. In many situations in life, such a cash injection helps borrowers temporarily.
If you need a relatively large amount of money as quickly as possible, taking out a loan in Switzerland can be worthwhile. But don’t go headless when applying for a loan. It is worthwhile to get as much information as possible about the respective loan offer beforehand.
In this situation, you can find out in which situations a loan can be useful, what details you should pay attention to when choosing a provider and which other tips on the topic of credit need to be considered. This is how you find the personal loan that really suits you and your project.
Credit Switzerland: In what situations does a loan make sense?
In most people’s lives, there are times when they need more money than they have in their account or in any other way. Sometimes it is predictable things that are costly. This includes, for example, building your own house or buying an apartment. Buying a car is also expensive.
In other situations, the need for additional money is about further education or the education of the children. Other cases in which a loan makes sense concern unforeseen situations, such as having to repair your home or car.
It can also make sense to replace an existing, older loan by taking out a new loan. In the meantime, better conditions have often arisen or their personal situation has improved.
Credit in Switzerland: What do the Swiss take out a loan for?
According to an analysis by the online comparison service comparis.ch, foreigners living in Switzerland in particular often take out a loan. It is all about financing a car. Other borrowers want to use the loans to pay outstanding bills or pay back debts.
The same reasons appear to apply to locals when taking out a loan. This shows another survey by comparis.ch. According to this, every third respondent (34 percent) has already taken out a personal loan. According to the borrowers, this was most often due to the car purchase (49 percent).
Just under one in three (31 percent) respondents said they needed the loan to bridge financial constraints. One in five (21 percent) used the loan to pay off debts or pay outstanding bills.
Many Swiss also needed additional money to buy equipment (13 percent) and electronic devices (12 percent). One in ten respondents said they needed the loan to travel.
According to the survey, younger people under the age of 35 often took out a loan in Switzerland to finance their education (30 percent). A total of 16 percent of those surveyed stated that they had taken out a loan for education.
The sums involved in personal loans are comparatively low on average. 55 percent stated that they had taken out a loan of up to $ 10,000. Almost one in three (28 percent) took out a loan of up to $ 20,000. According to their own statements, only 17 percent have taken out a loan of more than $ 20,000.
Can I get a loan?
If you are temporarily short of money, you may be considering taking out a personal loan. Branch banks or online lenders grant you a certain amount that you have to pay back in the agreed period. If you are wondering whether a personal loan is right for you, it depends on your situation.
The prerequisite for getting a loan is that you are creditworthy. You must also be at least 18 years old. A lender checks your creditworthiness before paying you a loan. Lending is not allowed if it would lead to your over-indebtedness.
Lenders who you apply for a loan check your credit rating. To do this, contact the Central Office for Credit Information, ZEK for short. This central information point collects positive and negative creditworthiness data. If you would like to know what entries there are about you, you can request a database extract online.
When evaluating your creditworthiness by a potential lender, it depends on whether you are likely to be able to pay off the loan applied for, including interest, within 36 months. This period applies regardless of the actual term of the contract.
Some lenders only grant loans up to a certain age of the borrower. As a rule, you must be able to prove employment. You must also be a Swiss citizen or be able to show a residence permit.
If you meet these requirements, in most cases there is nothing standing in the way of a loan. However, you should critically examine yourself whether you can repay the installments of your loan on time over the entire period of the loan. Include unforeseen events that reduce your monthly money available.
Credit Switzerland: What you should pay attention to when choosing an offer
If you want to take out a loan in Switzerland, it is worth comparing different providers. At first glance, some offers look very attractive. However, it is often the offers that seem unrealistically good that have a catch. Therefore, be sure to take a look at the terms of the respective lender. Do not be blinded by the few details with which the provider advertises his loans. Such conditions are often only possible in the best case. The actual costs are often significantly higher.
One of the most important criteria when choosing a suitable loan is the interest rate. This is legally limited in Switzerland. The maximum interest rate is usually a maximum of 10 percent according to the Federal Consumer Credit Act (KKG). The annual percentage rate is more meaningful than the interest rate. This value reflects the total costs associated with the loan over the course of a year.
The term also has a serious impact on the total cost of the loan. If you are solvent, it makes sense to repay the loan as soon as possible. This saves you costs. However, you must then be able to pay for higher rates. If this is not possible, it is better to choose a longer term. This reduces the monthly installments, but the total costs are higher.
When choosing a loan, pay attention to the modalities of repayment. When are the installments due? What about special repayments? Are there any other costs that may arise in certain cases? And what if you are unable to pay your installments on time? Then you usually have to pay a default interest. This cannot be higher than the interest rate generally agreed for the loan.
Further tips for taking out a loan in Switzerland
An important point when taking out a loan is early repayment. If you are able to pay off your debts earlier than agreed, you should. You save costs.
By law, lenders of consumer loans in Switzerland are obliged to waive part of the interest if you repay the loan early. The total cost of the loan must be reasonably reduced if you do not use the entire originally agreed term of the loan. This also makes an old loan, which you replace with a new loan, cheaper.
You should note that you have a legal right of withdrawal. You can revoke your loan application within 14 days. The deadline runs as soon as you have signed the loan agreement. It is usually sufficient to send your revocation to the post office on the last day before the deadline.
Before you sign a loan agreement, be sure to clarify what happens if you can’t pay. The lender can withdraw from the contract in certain cases. This would be the case if partial payments are open and these are at least ten percent of the net amount of the loan. Credit installment insurance protects you from certain situations that can result in you being unable to repay your debts on time – such as unemployment or unemployment.
Why online lenders can often offer you better conditions
You should only apply for a loan if you are very likely to get it. A negative decision has a negative impact on your creditworthiness and can also reduce your chances with other lenders. It is therefore not sensible to make a good luck application to several lenders if you are not sure whether you meet the requirements.
When it comes to the topic of credit in Switzerland, many interested parties do not know whom to contact. You can apply for a loan from a branch bank or an online lender. Online lenders often give you better conditions.
The fear that such offers could be dubious is in many cases not justified. The cheaper costs are related to the fact that a purely online provider saves money. He does not have to invest in a branch network and has a significantly leaner administration. In addition, you usually get such a loan in a more uncomplicated and often significantly faster manner than from a branch bank where you first have to make an appointment.
Personal loan from Astro Finance – favorable terms and flexible repayment
At Astro Finance we offer you personal loans with fair terms and flexible terms. With a consumer credit from eny Credit you are solvent in all situations – regardless of whether you are on a long trip or an expensive purchase. With us you can easily apply for your desired loan within a few minutes.
Choose an amount ranging from $ 1,000 to $ 120,000. You are flexible in terms of repayment: Repay the loan in six months – or in up to 84 months. Which term makes sense depends on the amount of the loan and your payment power. The interest rate at eny Credit is between 4.50% and 9.90%, depending on your credit rating. You can also easily repay the loan earlier. There are no additional costs for this.
With eny Credit Insurance you can insure yourself against a possible default. This is how you prevent and do not have to worry about possible unemployment, a serious illness or a disability.
Simply fill out the application for a personal loan from Astro Finance online – and get a non-binding offer. We are of course happy to answer any questions you may have about our loans. Contact us by phone, email or via our contact form. You can also make an appointment at our branch in Zurich.