For a personal loan, who determines the rate applied? How to estimate the interest rate of you future credit, or to benefit from the best rate of the market? Our explanation.
Institutions are not free to set any interest rate, and have to conform to the Swiss Consumer Credit Law. Thus, it is the Swiss confederation who decides the maximum interest rate allowed for a consumer loan. Until 2016, this rate was 15%. In July 2016, this rate decreased from 15% to 10%.
Institution proposing consumer loans are free to set any rate up to the maximum allowed rate. More specifically, the rate set by a bank is dependent on various factors, notably:
In order to obtain a better interest rate, it is importante to work on improving it’s solvency and its reliability. More specifically, attention should be given to:
It may be difficult for an individual adressing to a bank to negotiate the proposed rate. The bank will make an offer, and probably won’t change it. In order to get a lower rate, the best solution is to ask to a loan agency. Indeed, an agency has both the experience and relationships necessary to get a better offer.
For example, Multcredit – the loan specialist, is offering secured loan solutions.