Bern, 11.12.2015 - The Federal Council decided on Friday to adjust the calculation mechanism for the maximum interest rate on consumer loans as of 1 July 2016 and to review the interest rate regularly in future.
As a result, the interest rate will be reduced from the current 15% for cash loans to 10%, and to 12% for credit card overdrafts. In this way, the Federal Council is ensuring an appropriate balance between the interests of debt prevention on the one hand and those of credit institutions on the other.
With this step, borrowers will also be able to benefit from the current low interest rate phase in the future. The lending business can be operated profitably even with the new maximum interest rate. This is shown by the fact that consumer loans are already being granted today at an interest rate of around 6%. A lower maximum interest rate also leads to less risky loans being granted. It thus also serves to prevent over-indebtedness.
Annual review of the maximum interest rate
The calculation mechanism for determining the maximum interest rate is now laid down in the Ordinance to the KKG. Based on this mechanism, the maximum interest rate will be reviewed annually in the future and adjusted if necessary.
Benefit from the reduction in the interest rate and reduce the overall cost of your loan.
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