Requirements for a Loan in Switzerland: The Complete Guide

Getting a personal loan can be an important step to realize a project, handle an unexpected expense, or consolidate debts. However, in Switzerland, access to credit is strictly regulated by the Federal Act on Consumer Credit (CCA), which aims to protect consumers from over-indebtedness. Knowing the necessary requirements is crucial to increasing the chances of your application's success.

The Legal Requirements (de iure)

To get a loan in Switzerland, you must meet a series of non-negotiable legal criteria that are applied by all credit institutions, from major banks to cantonal banks and crowdfunding operators like Lend.ch.

• Age: You must be between 18 and 65 years old. In some cases, the maximum limit can be extended to 70 years, but this varies depending on the institution. If you are a retiree, you can consider dedicated solutions like the loan for retirees.

• Residency: You must be a Swiss citizen or a foreign citizen with a valid residence permit (generally C, B, or L permit). Most institutions require a stable and continuous residence in Switzerland for at least 6 months.

• Absence of Negative Entries: Your loan application will not be approved if you have negative entries with the Central Office for Credit Information (ZEK). The ZEK records all credits and leases granted in Switzerland and reports any payment delays or defaults.

The Financial Requirements (de facto)

In addition to the legal requirements, banks and financial institutions evaluate your ability to repay the loan. This evaluation is based on several factors, all aimed at measuring your solvency and your financial stability.

• Financial Capacity (Budget Balance): The bank will calculate your budget balance by comparing your income (salary, extra income) with your expenses (living expenses, taxes, health insurance premiums, other debts, etc.). To get the loan, the balance must be positive, demonstrating that you are able to repay the monthly installment without compromising your standard of living.

• Professional Stability: Your employment situation is a crucial factor. Institutions prefer applicants with an unlimited employment contract and a service seniority of at least 3-6 months. A fixed-term job or a self-employed situation can make the application more complex, but not impossible.

• Debt Situation: All your pre-existing debts, including other personal loans, mortgages, or leases, will be taken into account. A high level of indebtedness can negatively affect your application. For a complete overview of the world of financing, you can consult our section dedicated to loans, mortgages, and financing.

The Necessary Documentation

To verify all requirements, you will need to provide a series of documents. The list may vary slightly between different institutions, but in general, the following documents are required:

• Copy of your identity card or passport (front and back).

• Copy of your residence permit (if applicable).

• Copy of the last three pay slips or, if you are self-employed, the last tax return.

• Copy of the health insurance bill.

• Information on any other outstanding debts or leases.

Summary and Useful Tips

In summary, to get a loan in Switzerland, you must be of legal age, have a valid residence permit, and a stable financial situation. The most important thing is to demonstrate a solid repayment capacity, with a positive budget balance and a good credit history.

To find the most suitable offer for you and compare interest rates and conditions, we recommend using an online comparison tool.

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