Private loans in Switzerland: Overview
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1. Non-Binding Request
Complete our form, and our loan specialists will review your circumstances free of charge and without obligation.
2. Receive and review loan offer
We submit your loan request to a Swiss lender only with your consent. We’ll discuss the offer with you – the decision remains entirely yours.
3. Sign the contract and receive your loan
Upon signing, the 14-day withdrawal period starts. Once it has elapsed, your loan will be transferred to your bank account.
What is a private loan?
In Switzerland, the term «private loan» generally refers to loans granted to private individuals. It is not a legal definition.
Typical uses include buying a car, financing renovations, consolidating debt, paying for further education or covering unexpected expenses.
Who provides private loans?
Three categories of companies are relevant for professional lending:
1. Loan institutions or loan banks
Private loans are usually granted by banks. Some are universal banks that offer loans alongside other services, while others outsource loan granting to a separate business unit. In Switzerland there are also specialised loan banks.
2. Crowdlenders or P2P platforms
Peer-to-peer (P2P) lending, also called crowdlending, is a segment of crowdfinancing. It refers to platforms that connect borrowers and investors. Investors may be private individuals (P2P) or institutional investors and companies. Since 2019, private loans granted via crowdlending fall under the Federal Law on Consumer Credit (FLCC).
3. Loan brokers
Loan brokers can be private individuals or companies that professionally broker loans. They require a licence in the canton where they are based. Their service consists of advising customers and handling the administrative work on the way to a loan agreement. A loan broker works with various lenders and gives their clients access to a broader range of offers.
Our loan offers
Credaris collaborates with all relevant Swiss loan banks and loan institutes. This means, we can offer our clients access to the largest portfolio of loans in Switzerland.
Rely on Credaris' free advice
When you use our service, we check your enquiry free of charge and without obligation:
Your benefits
- With one enquiry at Credaris, you receive a realistic, non-binding and free assessment of your loan opportunities.
- Only if we believe approval is likely, we submit your loan application – in consultation with you – to a suitable lender.
- Until then, your enquiry stays outside industry databases such as ZEK or IKO and is not visible to lenders.
You therefore benefit risk-free and free of charge from our long-standing experience and access to all relevant lenders.
How much does a private loan cost?
Effective interest rates in Switzerland range from 4.4% to 10.95%, depending on the provider and the borrower’s profile.
- The lower the interest rate, the higher the requirements in terms of creditworthiness and borrower profile.
- The actual rate you receive can only be determined after your situation has been assessed.
How is a loan calculated?
A loan is made up of the amount, term and interest rate.
What you should consider when choosing the term
- The term controls the monthly instalment of the desired loan. The shorter the term, the higher the monthly instalment and vice versa.
- The longer the term, the higher the loan costs: the interest costs are calculated on an ongoing basis on the loan amount that has not yet been amortised (repaid). The higher this is, the higher the interest costs.
Nevertheless, we recommend choosing a longer term, and repaying more whenever the budget allows. This is possible at any time in Switzerland
If you go to the maximum of your monthly financial possibilities and choose a short term, there is a greater risk that you could fall into arrears with the instalments during the course of the contract. Within a term of often several years, it is realistic to have unexpectedly higher expenses from time to time.
To protect yourself at least partially in the event of involuntary unemployment, illness or accident, it makes sense to consider taking out payment protection insurance.
When is a loan classified as a consumer loan?
The Federal Law on Consumer Credit (FLCC) defines when a loan qualifies as a consumer loan. If a loan meets these criteria, the lending process must comply with the Swiss Consumer Credit Act (KKG).
- The loan amount ranges from CHF 500 to 80'000.
- The term exceeds three months.
- The loan is unsecured. «Unsecured» refers to the absence of collateral, such as a direct or indirect mortgage (real estate) or standard bank monetary assets.
- The loan is granted to an individual (a natural person under law)
- The loan is for personal use (distinct, for example, from a loan for business purposes)
Learn more about consumer loan.
Lenders’ requirements and risk criteria
Lenders apply a variety of risk criteria that are not publicly disclosed. This makes it difficult for you to realistically assess your chances of being approved.
The loan experts at Credaris help you avoid unnecessary rejections and place your application with a suitable provider.
Learn more about the base requirements for taking out a loan:
FAQ – Private loan in Switzerland
What should I consider when choosing a provider for a private loan?
Simply put: the lower the interest rate, the higher the requirements on the borrower’s profile. What really matters is checking whether, and with which provider, you can actually get a loan. Lenders offering the lowest rates generally apply stricter criteria and reject more applications.
How long does it take to receive a private loan?
Private loans that meet the criteria of a consumer loan are paid out after the contract has been signed and the statutory 14-day withdrawal period has expired. If a private loan does not fall under the Consumer Credit Act, no waiting period applies and the loan can be paid out immediately after a valid contract has been signed.
How long does a private loan run?
In Switzerland, private loans are granted for periods ranging from 6 to 120 months (10 years). Longer terms are not offered by Swiss lenders. If a private loan has a term shorter than 3 months, it does not fall under the Federal Law on Consumer Credit. The average loan term for applications via Credaris is over 60 months, i.e. around five years.
How is a private loan repaid?
If you pay the monthly instalments exactly as set out in the contract, the loan ends after the agreed term (it is «settled»). It is important to know that you may repay more than agreed at any time. This shortens the term and reduces the total cost of the loan. If a private loan meets the criteria of a consumer loan, the lender may not charge fees for early repayment, apart from small administrative fees. If a private loan does not fall under the Federal Law on Consumer Credit, the lender may charge a fee for early termination. For loans above CHF 80'000, it makes sense to check these fees carefully. Once the entire loan amount – consisting of repayments (amortisation) and interest – has been paid back, the contract ends.
What are the advantages of a private loan?
If you take out a private loan that meets the criteria of a consumer loan, the Federal Law on Consumer Credit applies. These clear and relatively strict rules are designed to protect borrowers from over-indebtedness. The most important element is the affordability check: a consumer loan may only be granted if the borrower could theoretically repay it within 36 months using their disposable income.
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Loan amount of CHF 25'000. Effective annual interest rate of 1) 4.9% to 2) 10.95%. Over 36 months, this generates interest or costs of 1) CHF 1'890.36 to 2) CHF 4'225.07 and a monthly instalment of 1) CHF 746.95 to 2) CHF 811.81.
Swiss Lenders offer terms from 6 to 120 months.