Increase or consolidate your personal loan
Have you taken out a personal loan and want to increase it? Here's what you need to know.
Have you taken out a personal loan and want to increase it? Here's what you need to know.
Applying to increase your loan means creating a new contract. You must therefore submit a new financing application. A new examination will be carried out, and you will need to return the mandatory basic documents. This gives you complete freedom to choose the amount and term, as long as the budgetary criteria are met.
You are not required to make this request with the same bank. The process for increasing or extending your loan follows the same procedure and legal requirements as your initial loan.
This means: if you still meet the basic requirements but your financial situation has slightly deteriorated, the rate will most likely be higher than for your previous loan. Depending on the financial institution, it is sometimes possible to lock in the current rate to maintain it for future increases.
Discover the differences between applying for a loan via a broker or directly with a bank.
If you have had or currently have a loan, it has created a credit history that impacts your credit score. Lenders report not only information about the loan (amount, term, reasons for refusal) to the ZEK but also your payment behavior. If you have experienced delays in paying the installments of your first loan, it will negatively affect your chances or the terms of obtaining another loan.
On the other hand, if you have always been punctual and met your obligations, these positive records will also be documented and considered in your favor when assessing the risk for your next loan.
If you have multiple ongoing loans (personal loan, credit cards, leasing), this is an opportunity to take advantage of the increase to consolidate everything, reduce the interest rate, and benefit from a lower monthly payment.
Remember: although the maximum interest rate for loans has increased, this also applies to credit cards and many store cards. While the maximum interest rate for personal loans is 11%, expenses made via credit or store cards can be charged up to 13%. Consolidating these debts into a single loan can therefore remain financially advantageous and help reduce the complexity of your monthly expenses.
Yes, increasing a loan is possible if you meet the eligibility criteria again and your budget allows for the new total amount (including the amount from the first contract).
Whether increasing a loan is beneficial for you is an individual decision and depends on your specific financial situation. The same legal requirements apply, meaning that the loan provider will only approve the extension if you are capable of repaying the full amount within 36 months.
A loan extension follows the same process as a new loan application. However, depending on the time since your first loan and whether you choose the same provider (broker or bank), some of your information may already be available, which can speed up the process. In general, the loan application process remains the same, regardless of whether it is an extension.
Calculation example
Loan of CHF 20'000. An effective annual interest rate between 4.9% and 10.95% and a term of 48 months generate total interest between CHF 2'018.10 and CHF 4'549.60. Term: 6-120 months; Maximum annual interest rate (including all credit charges) 10.95%. The granting of a loan is prohibited if it leads to the over-indebtedness of the consumer.(Art. 3 LCD)
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Request
Request your loan by using the online form or by calling us.
Complete your information and send your documents
Submit the mandatory documents and relevant information we need to assess your loan request.
Assessment and offer
Final response in less than 24 hours after receipt of the needed information, mandatory documents and a complete review of your solvency.
Contract signing and disbursement of your loan
Swift disbursement after you sign the loan contract and the consequent 14 day right of revocation (cooling-off-period).
