With the floor rate abandonment by the Swiss National Bank, making a loan in Switzerland as a borderer has never been so advantageous!
Borrowing money from Swiss banks as a borderer is already an advantage in itself in terms of safety. The loan reimbursement is in Chf, and thus in the same currency as your salary. Therefore, there is no risk related to a future unfavorable Chf/Euro exchange rate. On top of that, by choosing to make a credit in Switerland, you ensure to benefit from direct advantages due to Swiss banking safety.
When requesting a credit in Switzerland, the interest rate for personal loans depends on each client’s financial situation and the risk taken by the bank. In other words, if your situation is considered as financially healthy, you will be granted a low interest rate. For borderers benefiting from a stable situation in Switzerland with a reduced living cost in France, the rates offered are often more advantageous than in France! And this is even more true since the floor rate abondonmnent!
First of all, you have to consult the right society. With a same situation (income, budget, family situation,…) you might get different interest rate offers depending on which bank you go to. This is why the best thing to do is to consult a credit broker who will analyse your budget and find the most suitable solution for you! You will save some precious time and benefit from the best offer possible!
Mr Dubois lives in France and has been working in the same Swiss firm for 5 years. He holds a G establishment permit, and he is single without any children. With a 6000 Chf/month income after deductions, he wishes to borrow 20’000 Chf in Switzerland. He first consulted a credit agency where he delivered the required forms for his budget analyse (payslips, permits, non-ban banking declaration). He is granted a 9.95% rate on a 2 years reimbursement duration! Mr Dubois will then have monthly payments of 918 Chf on 24 months.
One last detail that borderers seeking for a credit should be aware of is that in Switzerland, all credit requests are registered into a central. We thus recommend to avoid making too many requests at once and to wait for a new offer between each loan request.
Article written by Creditloan: www.creditloan.ch