Swiss Loan for Cross-Border Workers

Working in Switzerland without living there requires several adjustments, one of which is financial. You need to choose the right banks to receive your salary, deposit your money, manage transactions, and save under the best conditions. What about consumer credit? Let's take a look.

Who can apply for a loan in Switzerland?

If you are a cross-border worker, you must meet several criteria to apply for a private loan in Switzerland. If you work in the canton of Geneva, your employment contract must have been in place for at least 12 months, while for other cantons, it must be at least 36 months at the time of application. Another condition is living in regions bordering Switzerland, such as Ain, Doubs, Drôme, Haut-Rhin, Territoire de Belfort, or Haute-Savoie. Swiss citizens living in France can also apply for credit in Switzerland under the same conditions.

The main conditions for applying for cross-border credit are:

Duration of Employment Contract
To qualify for a loan as a cross-border worker, the primary condition concerns the minimum duration of your employment contract with the same employer in Switzerland. This varies by canton:

• If you work in the canton of Geneva
  Your employment contract must have been in place for at least 12 months with the same employer.
• If you work in any other Swiss canton
  The duration of your employment contract(s) must be at least 36 months at the time of application.

Installments are similar in france and Switzerland

If the client approaches their bank in France for consumer credit, they may receive favorable rates around 2-3%. However, specialized institutions such as Cofidis offer much higher rates, sometimes up to 20%. In this case, installments are similar in both countries. For a loan of 10,000 CHF/Euros over 12 months, the consumer will pay between 853 CHF and 876 CHF at BANK-now and between EUR 847.64 and EUR 857.10 at Axa Banque, for example. In France, death, illness, and disability insurance are included in the monthly package, whereas in Switzerland, only death insurance is included in the interest rate.

Comparison of monthly installment for a private loan of CHF/EUR 10'000 and 12 months runtime

More flexible conditions

In France, the reason for the credit application must be specified, whereas in Switzerland this is generally not required. This allows for greater discretion and more freedom in using the funds. Higher amounts can also be requested (depending on income). In Switzerland, loans of up to CHF 80,000 can be granted, rarely exceeding this amount. However, banks such as Cembra and BANK-now offer maximum amounts of up to CHF 250,000. In France, the upper limit is EUR 75,000, although the maximum amounts actually approved usually do not exceed EUR 20,000.

Same currency

Security is also an important factor. As a cross-border worker receiving your salary in CHF, it makes more sense to take out a loan in Switzerland to avoid exchange rate fluctuations during repayment. However, if you become unemployed, you would still need to repay your Swiss loan in CHF while receiving unemployment benefits in EUR. This can create a significant financial burden. Cembra Money Bank is the only Swiss bank offering unemployment insurance for cross-border workers; other banks do not cover this risk.

French alternative

Some French banks offer loans in foreign currencies, allowing you to repay in CHF and keep the currency the same as your income. For example, Caisse d’Epargne d’Alsace provides this service. However, you are still exposed to exchange rate risks, as the funds are first disbursed in EUR and then converted to CHF.

Cautious swiss banks

When taking out a consumer loan in Switzerland, French banks do not have automatic access to this information unless they request a report from the ZEK . Conversely, Swiss banks do not have access to French credit histories, although they can review your bank statements. Swiss banks are cautious with French cross-border workers, as there is a risk that they may permanently leave Switzerland, making debt collection more difficult.

Our advice

For French cross-border workers:
A loan in Switzerland has the advantage of avoiding currency exchange, which is particularly safer for longer repayment periods. However, it does carry risks, especially in case of unemployment. In that situation, you would need to repay a loan in CHF while receiving unemployment benefits in EUR. Additionally, Swiss banks are cautious with French clients, which may result in higher interest rates than in France. French banks could offer you more favorable terms.

If you require higher amounts, a loan in Switzerland may be appropriate, as loans up to CHF 80,000 are possible. Nevertheless, Swiss banks are selective with French cross-border workers, and approval is not guaranteed.

For Swiss cross-border workers:
It may seem attractive to take out loans in France due to lower interest rates. However, the chances of obtaining these favorable loans are generally low, as you are usually not a client of a French bank. Loans from specialized institutions such as Cofidis often offer rates comparable to those in Switzerland. The advantage of a Swiss loan lies in higher possible amounts and greater flexibility in the use of funds, as the purpose of the loan does not need to be specified. Additionally, you avoid currency exchange.

Crédits Conseils: our services and commitments

• Detailed analysis of your profile and creation of a complete application file
• Calculating your budget to determine your credit capacity
• Personalised advice throughout the process
• Information about your rights, including the right of revocation ("cooling-off period") and early repayment
• Information on insurance covering you in the event of job loss or health problems
• Selecting the lender adapted best to your profile
• Negotiating attractive interest rates
• Absolute discretion: neither your spouse nor your employer will be informed of your loan request.