You plan on submitting a loan application in Switzerland, but how do you calculate the maximum budget to which you will be entitled?
Sums not exceeding 80,000 CHF
The budget criteria governed by Article 28 of the Swiss Consumer Credit Law apply for applications for sums not exceeding 80,000 CHF.
The budget calculation is based on a 36-month repayment period.
Calculating the ceiling
Broadly speaking, the calculation formula can be summarised as follows:
- Household: Income – Expenses = Available margin per month
- Maximum credit amount, including interest = Available margin per month x 36 months
- Deduct a maximum interest rate of 15% over 36 months (rates generally applied to credit cards), and you will get a general idea of the maximum loan amount to which you will be entitled.
Calculation method No. 1: example
- Household: 5,000 CHF (Income) – 4,000 CHF (Expenses): Available margin per month = 1,000 CHF
- 1,000 CHF (available margin per month) x 36 months = 36,000 CHF (maximum loan amount with interest)
- Maximum loan amount = 36,000 CHF (Maximum loan amount with interest) – 5,400 CHF (interest rate of 15% not taking into account annual debt amortisations) = 30,600 CHF
- You will therefore be entitled to an approximate maximum loan amount of 30,000 CHF at a 15% interest rate over a period of 6 to 84 months.
Calculation method No. 2: example
- Household: 5,000 CHF (Income) – 4,000 CHF (Expenses): Available margin per month = 1,000 CHF
- On the credit simulator (top of the page in the right-hand banner), position the « Duration » cursor to 36 months
- Then drag the « Desired amount » cursor until the « Monthly » range corresponds to the amount available per month, i.e. 1,000 CHF. You can therefore position the cursor to 30,000 CHF to obtain a « Monthly » range of 926 CHF to 1,040 CHF. The monthly repayment range represents the difference between a low and high interest rate.
Sums exceeding 80,000 CHF
For sums exceeding 80,000 CHF, banks are no longer required to comply with Article 28 of the Swiss Consumer Credit Law and can therefore grant amounts far exceeding the ceiling determined by the budget calculation.
Defining your loan ceiling
If your application is presented to a bank with an amount exceeding the ceiling authorised by law, this is justified grounds for refusal.
Our calculation tools help accurately define the authorised ceiling with regard to your situation and for each bank.
Calculating your maximum loan amount
You plan on submitting a loan application in Switzerland, but how do you calculate the maximum budget to which you will be entitled?
Sums not exceeding 80,000 CHF
The budget criteria governed by Article 28 of the Swiss Consumer Credit Law apply for applications for sums not exceeding 80,000 CHF.
The budget calculation is based on a 36-month repayment period.
Calculating the ceiling
Broadly speaking, the calculation formula can be summarised as follows:
Calculation method No. 1: example
Calculation method No. 2: example
Sums exceeding 80,000 CHF
For sums exceeding 80,000 CHF, banks are no longer required to comply with Article 28 of the Swiss Consumer Credit Law and can therefore grant amounts far exceeding the ceiling determined by the budget calculation.
Defining your loan ceiling
If your application is presented to a bank with an amount exceeding the ceiling authorised by law, this is justified grounds for refusal.
Our calculation tools help accurately define the authorised ceiling with regard to your situation and for each bank.