small loan? Yes but …

According to the Federal Statistical Office, every tenth Swiss household currently has a consumer loan. Many use the money to buy a new car, and taking out a loan is also very popular when buying furniture or financing an apprenticeship.

This is no coincidence: the borrower receives the money quickly and can take longer to repay – thanks to fixed installments. Before applying, however, there are a few important points to consider. You can find out what these are in our credit FAQ.

In Switzerland, the following minimum requirements apply in order to be eligible for a loan application:

• Minimum age: 18 years
• Residence: Switzerland or Liechtenstein
• Nationality: Swiss or foreigner with residence permit
• Minimum income: CHF 2,500/month

Creditworthiness and creditworthiness also play an important role – see the next points.

Before granting a loan, banks carry out a credit check. Every lender is obliged to first check the creditworthiness of an applicant. According to the Federal Law on Consumer Credit (KKG), consumer credit may only be granted to creditworthy consumers. When assessing creditworthiness, income and expenses are compared, taking into account any existing payment obligations of the consumer. This is usually checked on the basis of the documents sent in by the consumer (see below).

In addition to creditworthiness, credit institutions and banks also check the creditworthiness of the applicant. Each bank does this in its own way. Basically, it’s about, for example, querying the payment behavior. So if you always pay your bills on time, you are more likely to get into trouble when it comes to lending. On the other hand, if you regularly default in payment, your creditworthiness suffers. Lenders can also check with the Central Office for Credit Information whether you have previously submitted loan applications and whether these have been rejected. The banks can also see there whether you are regularly meeting any existing payment obligations (e.g. consumer credit, leasing). Finally, various personal data are taken into account – such as how old you are or how long you have been working for the same company. Or are you still on probation? This is to find out how stable your life is financially – or whether there are risk factors that speak against lending.

Choose your loan at Cembra

• cash advance
  With this loan, thanks to a fixed term and constant monthly installments, you know what effort awaits you. Choose the desired amount in the loan calculator – from 500 francs to 250,000 francs – and set the term (6 to 72 months). You will immediately receive a forecast of the monthly rate to be paid and the interest costs.

• Cash Credit Plus
  The Cash Credit Plus provides maximum financial freedom and offers the opportunity to access a cash reserve. Within the framework of the agreed maximum credit limit, money is available to you for the first two years: uncomplicated and flexible, exactly when you need it.

• Financing Plus
  Ideal for buying a car: You can get this loan directly from your vehicle dealer and benefit from stable monthly installments and a flexible term. At the same time, Financing Plus enables the car to be repaid in full, so that you are the owner at the end of the term.

• cash advance
  With this loan, thanks to a fixed term and constant monthly installments, you know what effort awaits you. Choose the desired amount in the loan calculator – from 500 francs to 250,000 francs – and set the term (6 to 72 months). You will immediately receive a forecast of the monthly rate to be paid and the interest costs.

• Cash Credit Plus
  The Cash Credit Plus provides maximum financial freedom and offers the opportunity to access a cash reserve. Within the framework of the agreed maximum credit limit, money is available to you for the first two years: uncomplicated and flexible, exactly when you need it.

• Financing Plus
  Ideal for buying a car: You can get this loan directly from your vehicle dealer and benefit from stable monthly installments and a flexible term. At the same time, Financing Plus enables the car to be repaid in full, so that you are the owner at the end of the term.

In order to check your creditworthiness, the lender needs your three most recent pay slips so that you can prove that you have a regular income. However, the lender also wants to know what your fixed costs are – i.e. how much you spend monthly on health insurance, rent, etc. – in order to be able to estimate whether you can actually pay back the loan. A copy of the front and back of the ID, passport or driving license is also required.

Calculation example: For a cash loan of CHF 10,000 with a contract period of 12 months and an effective annual interest rate of between 7.95 and 9.95 percent, the total costs are between CHF 420.80 and CHF 523.40.

No, the lender is usually not interested in what exactly you use the money for. There is also no obligation on your part to report this. An exception is the loan linked to the financing of an object, which serves to purchase an object (e.g. vehicle).

It is important that you choose a reputable and well-established player from Switzerland. Caution is advised with dubious foreign credit institutions. These often advertise with low interest rates, but are not allowed to grant any loans in Switzerland. According to the law, a consumer/borrower has the right to withdraw from the consumer credit agreement within 14 days. Consumer loans are usually not paid out to the consumer before the statutory cancellation period has expired.

In fact, credit is not the same as credit. Most lenders offer a variety of loan options. At Cembra, for example, customers can choose from three options (see box above).

Cash purchase, credit or leasing? There is no right or wrong when buying a car, it all depends on the type. Do you want to own your car? Then the loan is better: Depending on the product, the car is yours after the conclusion of the financing contract or at the latest after the entire loan amount including interest has been paid off. With leasing, on the other hand, you only use the vehicle and return it after the leasing period has expired. Or you pay the residual value. Then the car would also belong to you.

Cembra – leader in financial products

Cembra is a leading Swiss provider of financing solutions and services. Its range of products includes consumer credit products such as personal and vehicle financing, credit cards, related insurance distribution and bill financing, deposits and investment products. The bank has over a million customers and employs around 1,000 people from 42 countries. The head office is in Zurich, with branches in all parts of Switzerland.

Cembra is a leading Swiss provider of financing solutions and services. Its range of products includes consumer credit products such as personal and vehicle financing, credit cards, related insurance distribution and bill financing, deposits and investment products. The bank has over a million customers and employs around 1,000 people from 42 countries. The head office is in Zurich, with branches in all parts of Switzerland.

Pretty fast: The bank usually transfers the consumer loan after the 14-day cancellation period has expired. This is required by law. The deadline is used by the borrower to withdraw from the loan agreement in case of doubt. This is particularly useful if the loan application was due to a spontaneous purchase or something similar and you regret the decision after sleeping on it a few times.

The interest charged for loans varies in Switzerland depending on the creditworthiness and practices of the bank. However, a maximum interest rate for consumer loans is set by law. This is currently 10 percent. At Cembra, the interest range is currently 7.95 to 9.95 percent.

If someone has several loans running at the same time, it is worth combining them with one and the same provider. The reason: You only have one loan amount instead of several and therefore only have to pay one monthly installment. This saves you time and money. Because the interest only affects one loan amount, and it is not uncommon for you to benefit from better conditions when you combine them – provided your credit rating is good. You can redeem the loan from the old provider at any time. The new provider takes care of the change. Fees for the final settlement may apply.

Here you have the option of insuring the loan. Cembra also offers such an option, namely with installment insurance. This includes the events of an accident, incapacity to work due to illness or even unemployment through no fault of your own.

You will only receive the loan if you meet all legal requirements and the bank’s selection criteria. If this is not the case, the application can be rejected without further information. The credit rejection can be viewed by other member credit institutions in the central office for credit information for a period of two years. It is therefore worth checking your creditworthiness yourself in advance in order to minimize the risk of rejection.

For a cash loan of CHF 10,000 with a contract period of 12 months and an effective annual interest rate of between 7.95% and 9.95%, the monthly rate is between CHF 868.40 and CHF 876.95 and the total costs are between CHF 420.80 and CHF 523.40. Lender is Cembra Money Bank AG based in Zurich. Lending is prohibited if it leads to over-indebtedness of the consumer (Art. 3 UWG).