Calculation of the maximum loan amount

You should know these facts when applying for your loan:

Calculate legal budget for loan amounts up to CHF 80,000

Article 28 of the Swiss Consumer Credit Act (CCA) sets out the budget criteria. These are only applied to requests for a loan amount of no more than CHF 80,000. Higher sums are not affected by this law, as the basic idea of these regulations is to prevent consumers from becoming over-indebted. In Switzerland, only consumer loans that can be repaid relatively easily by the borrowers may be granted. While for individual applicants their income and expenses are relevant, for families the financial situation of the entire household is what counts. How the permitted maximum amount of your loan is calculated can be roughly summarised using the following formula:

Allowance per month = Yield – Effort
Calculation maximum amount of consumer credit = monthly allowance x 30

The best way to explain this calculation is to use a simple example. Here we assume that the monthly income is CHF 6,000 and the expenses for the same period are CHF 5,000. With this data, the following calculation results:

Exempt amount per month = CHF 6,000 - CHF 5,000
Available monthly margin = CHF 1,000
1,000 CHF x 36 = 36,000 CHF (maximum amount of the loan with interest)

This means that with a monthly allowance of CHF 1,000, it is possible to take out a total credit debt of up to CHF 36,000. Even if a longer term has been agreed in the contract, the credit provider must assume 36 months in order to be able to assess the creditworthiness.

 

What is the reality?

Although compliance with this budget calculation is required by law under the Swiss Consumer Credit Act, many banks do not make full use of the possible framework. In contrast, bestfinance.ch will be happy to help you optimize your budget and the associated application process.

We achieve the former by analysing your financial circumstances in detail and, if necessary, taking into account apprenticeship salaries, the income of your spouse and other household income. On the cost side, too, there are many points that should be included in the calculation. Premium reductions should be mentioned in this context. With these requirements, you will not only receive the maximum loan amount, but also the lowest interest rates.

 

Calculate legal budget for loan amounts over CHF 80,000

If the amount of the credit request exceeds CHF 80,000, the credit banks are not obliged to apply Article 28 of the Consumer Credit Act. Thus, sums can also be granted that are significantly higher than the calculated maximum amount. However, in such cases, the creditworthiness of the applicant is checked very carefully.

 

Possible reason for rejection of credit requests: the credit amount

This happens when the calculated allowance of your budget is too low. If you submit a credit application to your bank that exceeds the maximum amount allowed by law, they will have to reject your request. Our calculation tools allow us to determine with the utmost precision the maximum amount that is appropriate for your current financial situation. We also check your creditworthiness so that it is not a reason for refusal. This is done by inquiries with the cantonal debt collection offices as well as the ZEK. If you currently have several open debt collection proceedings, it will be difficult to obtain a loan. If you currently have loss certificates or garnishments, it is hopeless to obtain a consumer loan in Switzerland.

 

Conclusion

By comparing your household income and expenditure, the maximum amount of credit you can obtain is calculated. For sums of up to CHF 80,000, legislation has defined with the Consumer Credit Act that the amount of credit may at best be equal to 36 times the monthly allowance (including interest).

If you have any further questions, please do not hesitate to contact us. We help you get the maximum amount at the lowest interest rates.

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