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A personal loan is calculated from the amount, the effective annual interest rate and the term. This is how you can calculate the total interest costs. The interest costs and the loan amount together give the loan costs. These costs are again divided by the term to calculate the monthly instalment. In the Swiss lending market, personal loans are granted from CHF 1,000 to CHF 250,000; in exceptional cases you can also apply for higher amounts. The possible amount, interest rate and term depend on the lender. Check online what Swiss lenders offer.

In Switzerland, loans are normally granted with a term of 6 to 120 months. You can always repay more than the agreed monthly instalment, however. This way, you can shorten the term and save interest costs. The outstanding repayment and interest on the loan amount is recalculated each month. As soon as everything is paid, the personal loan agreement is terminated. Terminating the contract early is free of charge for consumer loans.

The term is a major factor in the cost of your loan. Does that mean you should choose the shortest term possible? As a rule, it is worth calculating the monthly payments with sufficient buffers. When you have the funds, you can – and should – always pay back more. This reduces the term, meaning you save on interest costs. It also means that you remain more flexible, and prevents sudden problems with repayments – if you get an unexpected dentist's bill, for example. Late payments impact your credit score and the terms of any future loan. This is because banks and lenders can access information about your payment behaviour via the ZEK central credit information registry.

You can calculate interest costs using our loan calculator. Simply enter the amount, term and interest rate. Interest costs are always calculated based on the outstanding loan amount. This means interest costs increase the higher the interest rate, term and amount are. Banks in Switzerland charge effective annual interest rates for personal loans of between 4.4% and 10.95%. If your application is accepted, your bank will tell you what interest rate applies.

You have to earn enough to be able to repay your loan without running into financial difficulties. You should work out roughly how much you can really afford to pay each month over a longer period of time. Remember to take unexpected issues such as car repairs and the like into consideration.
The bank is legally obliged to calculate a budget and to state this in the loan agreement. It may only make an offer for a personal loan if you could repay the entire amount in 36 months with your disposable monthly income. This is your credit limit. You can calculate your approximate credit limit online with Comparis.

Your own estimate of what monthly instalments you can afford and what term gives you enough leeway to pay any unexpected bill is important. In addition to the legal requirements, whether you can get an offer for a loan and at what interest rate depends on many other factors, and your creditworthiness. The bank's assessment covers your income, regular expenses, your age, how reliably you have paid your bills in the past and much more. You can find out more about this under the eligibility criteria.