Re­fin­an­cing loan

* This ap­plies to all loans covered by the Con­sumer Cred­it Act (KKG). Fur­ther in­form­a­tion on the cur­rent KKG can be found here: Fed­er­al Law on Con­sumer Cred­it (KKG)

 why early loan ex­change could be­ne­fit

Take ad­vant­age of the op­por­tun­ity to re­deem your loan pre­ma­turely and at no ex­tra cost. With a loan res­ol­u­tion, you can min­im­ize your monthly charge and save a lot of money thanks to the lower in­terest rate. Stay flex­ible in your fu­ture plan­ning.

The fol­low­ing ex­ample will help you un­der­stand how much you can save money if you can re­duce your in­terest rate. You have a cur­rent per­son­al loan with a re­main­ing cred­it amount of CHF 60,000. Your cur­rent in­terest rate is 9.6 per­cent and the re­main­ing term of the loan is still 48 months. Your monthly rate is cur­rently CHF 1'460. You have re­ceived an of­fer from a new lender with an ef­fect­ive in­terest rate of 6.2 per­cent (in­terest in­clud­ing all fees). In­stead of the CHF 1'460 you would only pay CHF 1'370 monthly with the new of­fer with the same term. You save over CHF 4'100 over the en­tire term of 4 years.

A pre­ma­ture loan res­ol­u­tion would already be worth­while in this case. Even in the event that you would pay fees for the fin­an­cial state­ment, you be­ne­fit from a pre­ma­ture loan debt.

Ac­cord­ing to the Swiss Con­sumer Cred­it Law (Kon­sumkred­it­ge­setz - KKG), the ter­min­a­tion of a con­sumer cred­it in Switzer­land is free of charge. Loans un­der the KKG (loans up to CHF 80'000) can be ter­min­ated at any time, without re­pay­ing the out­stand­ing in­stall­ments or pay­ing in­terest. If you want to re­place your cur­rent loan or sev­er­al loans pre­ma­turely, the new lender needs a fi­nal set­tle­ment from the cur­rent vendors.

The fi­nal bal­ance sheet con­tains the out­stand­ing amount of the cur­rent loans. It should be noted that some cred­it in­sti­tu­tions may charge fees for the pre­par­a­tion of the fi­nal set­tle­ment. If the cur­rent loan un­der the KKG is the fi­nal in­voice free of charge.

Pro­cure­ment of the fi­nal in­voice can only be re­ques­ted by the bor­row­er. Make sure that the fi­nal state­ment has been com­piled cor­rectly and the out­stand­ing amount has been de­term­ined ex­actly. With the fi­nal in­voice, the new lender can then de­term­ine a new loan of­fer for you.

We recommend that you cancel the old loan agreement only after you have received the written approval from the new creditor.

Our blog