A personal loan is, among other things, when a private individual receives a sum of between CHF 500 and CHF 80,000 from a bank and pays interest on it. Terms such as consumer loan, cash loan, or loan are also commonly used and mean the same thing. The credit amounts granted by BANK-now can range between CHF 1,000 and CHF 250,000. Where credit amounts of more than CHF 80,000 are granted, this does not constitute a personal loan.
The broad scope of application of personal loans
You can use personal loans freely according to your own wishes. Borrowers normally use the money to adjust to new life situations, realize personal goals, or bridge financial gaps. The financial freedom that this loan provides can be used, for example, to buy a new car, purchase new furniture, or make home modifications.
Taking out a loan should not lead to excessive debt. BANK-now ensures responsible lending in accordance with legal regulations. In addition to income, assets, and existing obligations, we ask about the amount of your rent, calculate the taxes owed, and determine other fixed expenses.
By law, the borrower must also wait 14 days to receive the payment of the loan. During this time, they can withdraw from the credit agreement free of charge, even if the agreement has already been signed. The purpose of this waiting period is to protect the borrower and prevent imprudent borrowing. With BANK-now, clients also benefit from a right of withdrawal that goes beyond this legal requirement.
As a basic principle, you should not choose too high a repayment installment for your personal loan because if the installment cannot be paid, you will have to contend with interest on arrears. To avoid this situation, the monthly payment of an installment can be deferred twice over the term of the contract free of charge with BANK-now. Irrespective of this, the borrower is entitled to pay back more than agreed at any time. Learn more about payment deferral here.
Tailored advice with BANK-now
We are happy to take the time to give you personal, non-binding, free advice, either by telephone or at a branch near you. If you would like to get an overview of your individual budget in advance, you can use our finance check.