Personal loan in Switzerland: the guide to understanding

Do you live and/or work in Switzerland and need short-term financing to buy a car, pay for studies or carry out any other project? Taking out a personal loan is probably the best solution for you. However, obtaining a personal loan in Switzerland requires compliance with a certain number of criteria that it is important to know well so as not to be refused outright.

What are the basic conditions for obtaining a personal loan in Switzerland?

In Switzerland, the subscription of a personal loan (or private loan) with a bank or a credit organization is governed by the LCC law (federal law on consumer credit). Promulgated in 2001 and amended in 2003, the latter sets the basic conditions that must be met before granting a personal loan in Switzerland.

Before submitting your request, it is therefore important to find out about personal credit and these essential conditions. These concern in particular:

age

In Switzerland, personal credit is available to individuals of 18 to 65 years old. People aged 65 to 70 still working or benefiting from a AVS or AI pension can also benefit from this type of financing under certain conditions.

Note that Swiss law makes every effort to protect subscribers from the risk of indebtedness. For young workers under 25, for example, obtaining credit is therefore more difficult. As this type of profile is considered potentially at risk, their scoring is negatively impacted.

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Nationality and place of residence

The nationality and place of residence of the applicant are also decisive for the granting of a personal loan in Switzerland. In summary, it should be remembered that access to this type of financing is reserved for:

  • Citizens of Swiss nationality having their legal residence in Switzerland or in Lichtenstein;
  • Holders of a license C. This permit is issued to EU nationals living in Switzerland and working there for at least 5 years;
  • Foreigners with a license B for more than 6 months. This document is issued to EU nationals working in Switzerland and wishing to settle in the country;
  • people one G license. This is a residence permit issued to cross-border workers. For the latter, an employment contract of at least 1 year (in the canton of Geneva) or 3 years (in the other cantons) is required to access credit. In addition, the applicant must have his residence abroad in one of the departments or in one of the border regions specified by the regulations.
  • Holders of a D, E or F legitimation card with main residence in Switzerland. This document is issued to members of a permanent mission in Switzerland and to international civil servants serving on Swiss territory.

Note that depending on your nationality and the type of permit you have, the characteristics of the personal credit offers to which you have access are not the same.

In addition, it is important to know that banks give a better score to people who change their place of residence infrequently.

The professional situation

To obtain private credit in Switzerland, you must have a job. Depending on your status, the conditions for granting and the characteristics of the offers then vary. Employees with an employment contract generally benefit from more flexible conditions.

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But you can also obtain financing as an independent, temporary or even as a company director.

Personal Loan Scoring In Switzerland

Personal loan in Switzerland and solvency measurement

To obtain a private loan in Switzerland, you must above all provide proof of healthy current financial situation And enough to cover reimbursement. But it is also essential that your bank history and personl be blank.

Budget calculation

In order to measure your solvency and determine the maximum amount you can borrow, banks calculate your budget. This assessment takes into account the following elements:

  • Your expenses: meals, rent, taxes, travel, number of children, maintenance of your vehicle, etc.
  • Your current commitments: credit cards, leasing, other loans being repaid;
  • Your income : most institutions require a minimum monthly income of 2600 CHF net excluding tax.

To prevent your file from being automatically rejected, you can perform an online simulation, and thus determine the maximum amount you can claim.

A blank history to obtain a personal loan in Switzerland

In addition to your current solvency, it is important to show your credentials with a clear history of any payment incident.

If you are subject to lawsuits for unpaid or acts of defects of goods, you cannot get a personal loan in Switzerland. If these are past facts, it is essential to pay them and clean up your profile before any request.

To do this, you can request that the proceedings be struck out and that your CRIF data be cleaned after payment.

Similarly, certain penalizing registrations at the ZEK (the Credit Information Center) can lead to an outright rejection of your file.

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Online private credit, a quick fix

All the parameters mentioned above are taken into account by Swiss banks for the calculation of your scoring before the granting of a private credit. If your file is accepted, you can obtain a financing repayable over 6 months to 10 yearswhich can be used as you wish.

To save time and obtain the best conditions, do not hesitate to make your personal loan application in Switzerland online and to compare offers before subscribing.

Read also: French company: how to conquer the Swiss market?

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