Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Our Rating: 9.5/10
- Friendly interest rates with short-term fluctuations
- Unlimited contract terms
- Long repayment periods of 7 years or longer
- Attractive repayment conditions
- Loans of up to CHF 50,000
- Loans granted within the first 48 hours
- Less stringent eligibility criteria
- Fixed rates on long term loans
UBS Group AG
Our Rating: 9.2/10
- Top loan conditions
- Attractive interest rates
- Repayment period of 7 years for long-term loans
- Get up to CHF 20,000 on the first application
- Fast online application
- Fast concession (in 15 minutes with online application)
Our Rating: 8.9/10
- Get a loan of up to CHF 50,000
- Low interest rates of 5.8% p.a.
- Flexible repayment term of up to 5 years
- Excellent loan conditions
- Fast application process
- Fast concessions
- Given for any purpose
Cooperative Rabobank AU
Payday Loans in Switzerland, All You Need To Know:
FUNDGECKO is here to help you make a hassle-free and fast financial decision by walking with you to the best consumer credit that’s consistent with your needs and peculiarities. It’s our job to present to you everything you need to know before contracting consumer credits.
The current market for payday loans
We tell you the latest news about financing this month. Find out in a minute about the most relevant news on consumer credit.
- The Swiss National Bank held a meeting featuring the interest rates policy on March 24 2022 where it agreed to maintain its long-standing interest rate policy of -0.75% on sight deposits. This marks the lowest interest rate in the world.
- In March 2022, Switzerland saw an inflation rate of 2.4% which is a 0.2% increase from February’s inflation rate. The high inflation rate is sparked by the adverse effects of the Russia-Ukraine war, which is expected to affect the Swiss financial systems, increasing the lending rates.
Switzerland is one of the best countries to get payday loans from because of its relatively low rates. However, the rates are expected to go higher with the ongoing Russia-Ukraine invasion.
What to know before taking out a payday loan in Switzerland
Having all the pertinent information you need before applying for a payday loan will go a long way in helping you to not only make a successful application but also securing a loan that’s less costly and more favorable.
Below are the 6 factors you should consider before setting out for a payday loan:
Your credit rating
This is the main parameter that a lender or bank will check about their loan applicants. According to the Swiss Consumer Credit Act (KKG), a consumer loan falls somewhere between 550 and 80,000 francs. Meaning your payday loan should be under this cap so as to be regulated by KKG.
KKG also states that all loan consumers must demonstrate their ability to repay the loans under their agreed loan conditions. Meaning you’ll need to conduct a thorough financial audit before taking out a loan so that your repayment process may not be strenuous.
Loan eligibility versus bankruptcy
Among the many things that affect your credit eligibility in Switzerland is filing for bankruptcy. According to the Consumer Credit Act, your loan application will automatically be discarded if you filed for bankruptcy or debt collection orders.
This is the main factor that affects not only your ability to get a loan but also the type of loan you get. If the Central Office for Credit Information (ZEK) or other credit bureaus in Switzerland rank you as credit worthy, lenders will feel free to grant you low interest loans and of huge amounts.
If you have children, your failure to pay for child maintenance may affect your ability to get a loan. Your lender will quickly know whether you pay for child maintenance while comparing your monthly income, your expenditure, and credit capacity.
How to use FUNDGECKO to get payday loans
At FUNDGECKO is passionate about helping our users in making a seamless financial decision. We walk you through the process of loan application from which loan to choose to the very last stage. Hence, we marshal all the relevant information you’ll need before taking out a loan including the loan characteristics, their terms of operations, and conditions. This information will equip you and make your financial decisions informed.
These are the steps you’ll follow at our site:
- Make a free comparison of the financial products you’re interested in.
- Be sure to read through and through the contractual terms of the loans before settling for one.
- FUNDGECKO will step in to help you choose a credit you like with confidence/ In case you develop any doubts about our services, our professionals will help clear the air and make your decisions more firm. Clicking on “Contract” will take you to the entity’s website where our experts will help you through the application process.
- We know that you may want to come back and leave a comment about how good our services are. That’s the reason why our website has a comment section..
How to apply for a payday loan?
The steps you take during a payday loan application are somewhat common. In only a few cases will you find unique steps. Furthermore, the process of application is simple, fast and hassle-free, which makes borrowers prefer payday loans to other loan types.
Below are some of the most common steps you’re likely to follow with any lender in Switzerland:
- Select at least three entities that offer what’s close to your needs, consult about their terms and conditions before settling for one. Make personal research to determine whether talking out a loan from the entity is safe.
- The entity will send you an application document, requiring you to fill it out with the most accurate, honest information about your preferred loan amount, repayment term, purpose, and other conditions. While providing personal details, ensure they are similar with what is recorded in your supporting documents.
- After submitting the application form, you’ll receive a pre-approval notification instantly for the online application and after at most 48 hours for the in-office application.
- The entity will require you to send them the supporting documents. Be sure to send every document required to reduce the chances of your application being discarded. Depending on the entity, you might send the documents online or drop them at their offices.
- If the entity approves your loan application, you’ll receive pre-contractual information that indicates all the terms and conditions of the loan. Be sure to go through it to know whether you’re comfortable with the loan, and to know about any payments you might make in the future.
- If everything about the contract makes you comfortable, the entity will require you to sign up for the contract, either online through digital signature or in-office.
- Get the funds in a period not exceeding 48 hours.
Requirements for payday loans in Switzerland
To have a successful loan application, you’ll need to abide by every single requirement set by the entity. While these requirements are unique to an entity, the most common ones are set by the Swiss Law.
- Be 18-years-old and above. This mostly applies to entities that offer small loans or entities that are looking for a market. In many entities, the applicant will be required to be not younger than 21-years-old.
- Have a residence permit in Switzerland. Entities do not grant payday loans to applicants outside Switzerland.
- Have stable employment. You’ll not qualify for a loan if you’re on probation, according to Swiss Law on consumer credits. Moreover, you might not get a loan if you have temporary employment such as on a 6-months contract.
- Have a healthy level of debt. The recommended level of debt is 35-40% of your monthly income. Anything higher than that will translate to negative credit history with ZEK, Intrum Justitia, or CRIF.
If your name is blacklisted with any of the above-mentioned credit bureaus, your loan application will automatically be rejected.
Documentation for applying for a payday loan
It’s also not enough to meet the requirements mentioned in the previous section. Lenders in Switzerland will require you to provide supporting documents to prove that you actually qualify for a consumer credit.
Below are some of the documents you’ll most likely need to present:
- Copy of your identity card or any other valid proof of identity
- A bank statement that includes your income and expenses for the past few months
- Proof of income. Depending on the entity, you might need the last three payslips
- The last income tax return (especially if we ask for large amounts)
- Have a proposal form wherein you’ve detailed the purpose of the loan. This doesn’t apply to small loans.
Asking for a personal loan from a bank with which we have an active account and your receipts and income are domiciled will save you the hassle of much paperwork.
FAQ: Frequently Asked Questions
What is a payday loan?
A payday loan is a type of short-term consumer credit that’s mostly designed for economic emergencies. The loan is fast and has a short repayment period, which is typically one month. This type of credit is mainly suitable for situations that need small loan amounts because of their high interest rates. For instance, you may need it if you need funds to finalize your project, renovate your home, or buy a car, among others.
Why don’t you give me payday loans?
The most common reason why your payday loan application is rejected is registering a negative credit history with any of the credit bureaus in Switzerland. Other reasons could be you don’t have a stable source of income, hence the lender shies away from granting you the funds in fear that you’ll not manage to repay the loan.
What is the binding offer of a payday credit?
Before signing up for the loan contract, the lender will send you a binding offer. The document indicates the clauses and conditions of the loan, which you’re required to go through in 14 calendar days before placing the signature.
Can payday loans be paid in advance?
Swiss law allows credit consumers to make loan repayment in full or part before the required time. However, this might be a little expensive because the lender will require you to repay the principal amount plus the accrued interests and other fees and commissions. Some lenders will also set an early repayment fee.
What if I take out a loan online and then regret it?
By law, a borrower has 14 calendar days to withdraw their loan without attracting any charges. This comes immediately after receiving the funds. However, the borrower may face penalties if he attempts to withdraw the loan after the safe 14 days.
When to Apply for a Payday Loan
A payday loan comes in handy when you’re looking for funds to complete a certain project that’s not so urgent and you don’t mind shifting entities.
The above-mentioned entities are the best payday lenders and will give you a financial product that’s most consistent with your financial situation. The loans are compatible with both Swiss nationals and expats.
When to Apply for a Fast Loan
You need a quick financial injection, probably due to an emergency. Fast loans are small in size, high in interest, and have a short repayment term. The loan is only applied when the purpose is urgent and cannot wait for your next income. It’s therefore advisable to borrow responsibly and repay a loan before taking out another one.
A loan is helpful if only you’re able to assume repayments comfortably and within the required time. To avoid surprise payments in the future, be sure to read through the contractual terms that the entity sends you.
Be safe and borrow responsibly.
About this page and our methodology
About this page: we are passionate about helping you to get the best financial product that’s consistent with your financial situation. We, therefore, marshal the best available information about consumer credits and how to compare the options so you may end up with the most attractive offer at the moment.
Source: the information regarding the main characteristics of loans in Switzerland and their current regulation comes from the Swiss Consumer Credit Act and other reference portals.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About Us: FUNDGECKO is an online comparator website specializing in personal finance and home economics products. We help our users not only compare the available financial products in the market but also provide rich information that will shorten the decision-making process and help them end up with the best offer.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.