1. So you've decided to apply for a loan?
You have two options:
Option 1: choose a Swiss lender yourself
Use our loan comparison tool to get an overview of loan deals in Switzerland and compare interest rates.
Make the most of your right to obtain a free credit reportfind out what information credit agencies such as Crif, Intrum (not available in English), Dun & Bradstreet or Creditreform have about you.
Undergoing a credit check is a central part of being granted a loan.
Have you already taken out loans or entered into leasing agreements? Then you can also request a personal report from the ZEK (available in French and German).
Tip: submitting several loan applications at the same time will have a negative impact on your chances of receiving a loan.
A solid credit score and a secure source of income are the basic requirements for taking out a loan. Lenders also apply their own risk criteria but do not publicize them.
Approximately 50% of all loan applications in Switzerland are rejected.
If you apply directly with a bank or crowdlending provider, your information will be requested from the ZEK database as soon as you submit your application.
Option 2: submit your loan enquiry to Credaris via Comparis
Credaris specializes in brokering personal loans.
Credaris offers a no-risk check of your credit score and eligibility.
You'll receive an offer after undergoing a thorough background check.
Upon agreement, Credaris will submit an application on your behalf to the lender most likely to approve you for a loan.
2. Loan application
Step 1: submit your documents
Lenders and credit brokers first need some information about : their identity, credit rating and financial situation.
You will therefore need to submit the following paperwork:
Salary statements for the past 3 months
ID (identity card, passport)
For : settlement or residence permit
Often also a copy of your tenancy agreement
You may be required to submit later in the process, depending on your individual situation.
For self-employed people: a tax assessment
In some cases, further proof of your source(s) of income (e.g. bank credit notes for alimony or widow's pension)
Proof of marital status (e.g. divorce/separation decree)
When refinancing a loan: signed contract, bank details
Step 2: wait for your credit check results
Every potential borrower undergoes a credit check before being awarded a loan. Lenders request and analyze information on applicants such as their unpaid debts and past payment behaviour. The interest rate you receive depends on the results of your credit check. Having a positive credit rating lowers your risk in the eyes of the lender – and also your interest rate.
Good to know: depending on their internal risk assessment policies and the , lenders usually require certain additional documentation to be submitted. So you can expect to be asked for more paperwork during the course of your credit application.
3. Loan agreement
If you are approved for the loan you applied for, you will receive a contract to sign. For contracts within the Federal Act on Consumer Credit (KKG), you have a 14-day right of withdrawal. After the 14-day period, the loan will be transferred to your bank account. Loans over CHF 80,000 can be paid out directly.
Why is there a 14-day "right of withdrawal" period in Switzerland?
Loans covered by the Consumer Credit Act are only paid out after a 14-day cooling off period following the start of the contract. The idea is to protect consumers, giving them time to change their minds and terminate the loan agreement.
For this reason, "instant loans” (also called "express loans" or "quick loans") are not offered in Switzerland, even though you may often see ads of this nature online. It is forbidden by law to use the term "instant loan" in advertisements.
4. Increase your chances of getting a personal loan
Loans are not suitable for solving ongoing financial difficulties or financing one-off activities like holidays or weddings. In order to protect consumers from falling into excessive debt, Swiss law has strict regulations regarding issuing loans. This includes checking borrowers' credit capacity, giving consumers a 14-day cooling-off period to change their minds, and allowing loans to be paid back early at any time.
Taking out a is a long(er)-term obligation. You should therefore consider this decision carefully and make all the necessary preparations before submitting your application – for instance, requesting your own credit report and calculating how much you can afford to borrow.
Please note that every loan provider has different requirements for granting loans. It can therefore be difficult to assess your chances in advance. You should not send out multiple loan applications at once: this can lower your chances of being approved for a loan and negatively impact future loan applications.
You can boost your chances by submitting a loan enquiry to a . Credaris will review your profile free of charge and with no obligation, and give you an honest assessment of your options with respect to the loan you want.
FAQ – frequently asked questions about loan applications
All loan rejections are reported to the Central Office for Credit Information (ZEK). Depending on the reason for the rejection, having this information on file may make it difficult for you to take out loans in the future. However, being rejected for one loan doesn't necessarily mean you will be rejected for others. With that said, it's advisable to avoid unnecessary rejections by having your application thoroughly reviewed in advance.
Find out more about the topic:
There is no limit to the number of loans you can take out. The only limiting factor is whether you can afford to pay the total monthly instalments. It is more effort to have multiple loans running at once. Taking out higher amounts tends to positively affect the interest rate. So if you want to take out additional loans, it would make sense to look into refinancing options.
Certain lenders require that existing loans be paid off in advance. Submitting several loan applications at the same time will have a negative impact on your chances of receiving a loan. Too many existing loan agreements will also adversely affect your application, as will switching between agreements too quickly.
When it comes to applications with commercial lenders, you have three options:
Directly with the lender (bank)
Via a crowdlending platform
Using a loan broker
As a borrower, you have a 14-day cooling-off period within which you can withdraw from a loan agreement. For this reason, a loan is only paid out on the 15th day. This is regulated by the Consumer Credit Act (KKG). Lenders define the start of the right of withdrawal period differently.
In most cases, the money is transferred to a bank account. Cembra is currently the only lender offering the option of having the loan paid out in cash at the counter. In a contract, this is described as a cash loan. However, the KKG also describes personal loans that are transferred to a bank account as cash loans.
As a general rule, loans of up to CHF 250,000 may be approved in Switzerland. For loans covered by the Consumer Credit Act (up to CHF 80,000), lenders are obliged to check your credit capacity. You can calculate how much you could borrow according to the Consumer Credit Act.
For any loan application, borrower information must be transmitted to a lender. All lenders offer digital forms that you can use to submit your personal data, required loan amount and the repayment term.
After the initial credit capacity and creditworthiness checks on the customer, the lender will request further documents in support of the application.
These documents usually include:
Recent salary statement(s)
Certified copy of an ID card or passport
For foreigners: residence permit or passport
Tenancy agreement (in most cases)
Documentation relating to the existing loan if refinancing or topping up
Other documents may be required depending on the borrower's situation (marital status, alimony etc.). Increasingly, lenders are offering customers the option of online identification. In this case, there is no need for a certified, paper copy of ID. With online loan applications, the documents and agreement itself can also be processed electronically.
This article was first published on 16.09.2021
