Maximum rate decreased to 9.9%
In December 2015, the Swiss Federal Council decided to decrease the maximum interest rate from 15% (set in 2003) to 10% for cash loans and 12% for credit cards. This move is designed to prevent over-indebtedness and ensure that fewer subprime loans are granted by the banks. The rate will be revised upward or downward every year based on the Libor.
Advance measures taken by the banks
This new decision is set to come in to force on 1 July 2016. But to remain competitive, some banks had already dropped their rates below the 10% mark in the first quarter of 2016. Detailed figures can be consulted in our private loan comparison for 2016.
Do you have outstanding credit ? Reduce your interest rate !
If you are currently repaying credit, you can renegotiate a more advantageous interest rate in light of these changes.
Have your personal and professional situations changed ?
This request to review your interest rate is only worthwhile if you currently meet the credit criteria concerning your financial resources and credit rating.
If in the meantime your income has decreased because you have lost your job and/or your outgoings have increased, you are involved in legal proceedings and/or have unpaid debt or are struggling to repay your monthly payments by their due date, your request is likely to be rejected and you may subsquently be registered with the ZEK (Central office for credit information).
If in doubt, call one of our advisers on 0848 10 2000. They will be able to advise you on the best path for your situation.
What do you need to do ?
The procedure involves consolidating your debt, following these steps :
- Fill out one of our online debt consolidation forms, with or without a credit increase
- Send all the necessary documents
- Once we have received all the documents, you will receive a definitive answer within 24 hours