When speaking of loan, the credit interest represents the total cost of the loan. Basically, this credit interest depends of two main factors:
A personal credit comes with a rate generally varying between 7.9% to 13.5%. Banks set the interest according to the situation of everyong requesting a loan. The best is your financial situation, the lower interest rate you will be offered for a loan.
The credit interest is actually an annual one. That means the calculation of the cost is not so easy. Let's take for example a 12-months repayment of a 10'000 Chf loan, with an credit interest rate of 10%. Each month, you will pay interests over this loan. That means that each month, the sum you'll have to repay will be lower, and the interest will decrease.
In general, this reasoning explains why, for a loan of 10,000 CHF over a year, you pay in the end only 650 Chf of credit interest in total. It can be quite difficult to calculate a credit rate.
Therefore we advise our customers, rather tan being interested at the interest rate, to check the total cost of the credit. This information is much more valuable and makes things easier to compare.
If you with a free loan offer and a free evaluation of the credit interest you could have depending of your situation, do not hesitate to ask us. Our team will be glad to offer you a free analysis of your situation and provide you with a non-binding offer:Ask a loan
Lending a private loan is forbidden if it leads to over-indebtedness of the consumer (Art, 3 of Swiss LCD)
Calculation example: a 10,000 Chf loan with an interest rate of 5.90% to 9.90% gives a total cost for 12 months of 313 to 520 Chf.
The final interest rate varies according to each client's situation, from 4.8% to 9.9%. There are no administrative or additional costs: you only pay the interest on the loan.
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