A favorable loan gives Swiss people who do not have enough money or. capital, the possibility of financing a new car or their own home. You can find out what you need to know below.
What are possible use cases for a personal loan?
In Switzerland, taking out a small loan is usually less welcome. However, according to the Federal Statistical Office, about 31% of the population live in a household with at least one credit. In most cases, a personal loan is used elsewhere – 18% to buy a car, 7% to buy furniture and 3% to pay other bills.
The majority of people, when buying real estate or financing construction projects, opt for mortgages with lower interest rates from the bank. A personal loan, on the other hand, can be a sensible alternative for financing a renovation or the purchase of a property. It is good to know that since July 2016, the Federal Council has ordered a reduction in interest rates for providers of consumer loans. These may only require a maximum of 10% interest. This reduced the risk of over-indebtedness.
If you want to realize your dream of owning a home, you should definitely consider all possible options. The personal loan is an individual solution for obtaining a mortgage. Good preparation is important when taking out a loan. A comprehensive overview of the offers and options as well as a comparison of conditions such as term and interest rates by means of a loan comparison will help you to make the right decision.
Who should not take out a loan?
To obtain an adequate personal loan, you must first analyze your own needs.
How flexible needs can be adapted to the conditions of the credit bank? How to increase the likelihood of getting the loan you want? With the help of experts, you can achieve optimal budget planning, secure individual conditions and adapt them to your own needs.
If your desired loan offers a transparent effective interest rate, optimized budget planning through fixed monthly installments, an individual term, as well as fast, discreet and uncomplicated processing, this is an advantage for you. In addition, the possibility of early repayment of the money increases your flexibility.
Many credit institutions also offer protection against unforeseen circumstances, such as e.B. Installment insurance in the event of involuntary unemployment, illness or other incapacity to work. This option is usually subject to a fee, but covers you in case of emergency.
Your advantages with a personal loan at a glance
What you really need to consider to realize your dream of owning a home? How to get the best overview of the various offers from all providers on the credit market?
By comparing offers, information can be gathered. For this purpose, there are numerous providers on the Internet. Personal offers from financial service providers offer a loan comparison tailored to individual needs.
Comparing the various conditions of a personal loan should definitely be discussed with an expert. The interest rates, the term as well as the rates for taking out a loan vary widely. Experts help to avoid possible pitfalls, but also to ensure the chances of obtaining a loan. Because low interest rates are usually tied to extended credit terms and are not available to everyone. The interest rates of a personal loan are often fixed and not variable, which must be taken into account if you want to save on borrowing. That's why more and more individuals are opting for mortgages, which usually have lower interest rates.
Professional advice from a bank brings further advantages and you can also save money in the process. Having experts verify the purchase price based on location and property data protects you from unnecessary costs or even debt. The purchase price can be compared based on reference properties from the bank's archives, while providing you with a solid reference for negotiating the purchase price with the seller. In addition, the experts have extensive information about the municipality, the price level and the tax rate, and develop a budget plan that is right for you.
Credit as an alternative to a mortgage
With a personal loan as construction financing, you get a budget in the form of a personal account. This means that the lending institution will give you a loan on your construction account. In any case, however, you should check whether the interest rate is variable or fixed before applying for the loan. After completion of the construction work, the construction money is usually converted into a mortgage with a fixed interest rate for repayment.
If you finance your building project with a mortgage, you have several options. At the start of construction, you receive one payment for the full amount on the construction account or staggered payments over the entire construction period. Depending on the bank, there are different types of mortgages. Amortization usually begins after construction is complete.
The benefit: A fixed-rate mortgage protects you from rising interest rates.
Requirements for a personal loan
- Minimum age between 18 and 21, depending on financial institution.
- Swiss citizenship or valid residence permit with domicile in Switzerland or the Principality of Liechtenstein.
- Current income from employment that has not been terminated indefinitely.
- The carrying capacity of the loan must be guaranteed; it must not lead to over-indebtedness.
Options
- A personal loan offers the option of an increase during the term if needed. Alternatively, if a suitable offer is made, a loan can be redeemed.
- Fixed terms and loan rates allow for optimal budget planning.
- The purpose of use does not have to be specified and can be freely selected.
- Interest rate increases are excluded during the term if a fixed interest rate has been agreed upon!
Disadvantages
- Most personal loans have a higher interest rate than mortgages or construction loans.
- Private loans can lead to financial problems or over-indebtedness if the financial situation changes due to unexpected events. Banks generally offer protection only in case of accident or illness.
- In most cases, comparatively small amounts up to a maximum of CHF 80,000 are available.
- Personal loans sometimes have a variable interest rate.
Get a loan in 4 steps
- Define credit needs with a credit calculator: What are the effective loan costs and loan rates?
- Get a free overview with an independent loan comparison and get quotes.
- Obtaining expert opinions on the selected credit solution.
- Apply for credit online.
4 important questions to ask yourself
What requirements do I have to meet to be able to take out a personal loan? How can I secure suitable credit for my personal dream? What interest rate and term terms allow you to budget optimally? How is the repayment of the loan as simple as possible?
With these tips you will get the personal loan faster
- Requirements: Your creditworthiness is checked. Of particular importance is that there has been no debt collection for at least three months and a permanent job is available.
- Loan amount: A small loan usually has a comparatively low limit of max. CHF 80,000. Use an online loan calculator to get upfront information on monthly payment and interest rate.
- Term: usually individually selectable. A personal loan begins with the signature. However, the validity can be revoked within 14 days, which is why an instant loan is not possible. However, loan providers have adapted and a potential borrower can relatively quickly take out a loan online.
- Interest rate: depending on the credit institution, the terms are variable. A fixed interest rate is advantageous and protects the consumer from sudden interest rate increases. The interest costs are often included in the monthly installments. Compare loans to benefit from the best interest rate.
- Repayment: The repayment models vary depending on the provider. Monthly constant installments and the possibility of subsequent payments or the possibility of immediate repayment of loans are advantageous.