What is the maximum amount of your loan in Switzerland? (2024)

In Switzerland, the Swiss Consumer Credit Act and its associated ordinances determine who can apply for a loan, how many loans they can apply for, and what amounts they can request. This blog article sets out the key criteria you need to meet in orde

Financing and advice

3 min

11.08.2022

That's what really matters.

The Swiss Consumer Credit Act protects all parties involved in lending.

This blog article explains which criteria are used to assess your solvency and how you can easily calculate your personal credit limit.

What is the maximum amount of your loan in Switzerland?

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The Swiss Consumer Credit Act applies to loans granted to private individuals of between CHF 500 and CHF 80,000. The repayment period must be at least three months. Even if you agree on longer terms, the Swiss Consumer Credit Act requires you to be able to repay the credit amount within 36 months, whereby only the interest during that 36-month term is taken into account. In addition to these framework conditions, the amount of the loan always depends on your personal budget and your financial situation in general.

What is the maximum amount of your loan in Switzerland?

Amounts from CHF 500 up to CHF 80,000 are referred to as consumer loans.

The rule of thumb for calculating the maximum amount is that your budgetmust allow you to repay the loan within 36 months, even if a longer term has been agreed upon (including the interest due during 36 months).
The difference between income and outgoings is used to calculate the discretionary monthly amount available to you to repay the loan. Multiply this amount by 36 months. To calculate the maximum amount of yourpersonal loan:

Maximum loan amount = discretionary monthly budget x 36.

The credit amounts granted by BANK-now range from CHF 5,000 to CHF 250,000. If credit amounts exceed CHF 80,000, the credit no longer qualifies as consumer credit.

What is solvency – and why does it play a role?

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Solvency is the financial latitude or discretionary amount in your budget that you can use to make monthly repayments. Information about your net income, housing costs, and the amount of your health insurance premiums will be requested to determine whether you can afford to take out a loan. Of course, in addition to the amount of the loan, the agreed interest rate also plays a role. Within the scope of the Swiss Consumer Credit Act, the interest rate in Switzerland must not currently exceed 12 %. The amount of interest and costs depend on your calculated creditworthiness. In addition, it is generally not possible to take out a loan in Switzerland if your net income is less than CHF 2,500 per month.

Calculate your maximum loan amount with our quick finance check

You can calculate the amount of your personal loan without obligation using our quick finance check. In order to carry out this calculation, we need details about your civil status, monthly income, and other financial information.

Can a personal loan application also be rejected?

Yes, a personal loan application will be rejected if, among other reasons, the amount of the loan applied for exceeds your solvency. In addition, poor creditworthiness can be a reason for a personal loan application being rejected. In this case, you must first try to improve your creditworthiness before you can take out a new loan. A loan application will be declined in Switzerland in the case of current debt enforcement proceedings, certificates of shortfall or seizures.