Refund

For private individuals living in Switzerland, Swiss nationals or holders of a B, C permit or legitimation card (D, E, G and H), increasing your liquidity is possible, and so is saving money. Benefit from an individualized study of your project, and a tailor-made loan offer very quickly.

What are the Amounts to be Paid on Early Redemption?

When a borrower decides to repay his or her loan early, certain charges must be taken into account:

• Accrued interest: The borrower must pay interest accrued up to the date of full repayment of the loan. This sum corresponds to the interest calculated on the effective period during which the credit was used.
• Administrative charges: Depending on the financial institution, administrative charges may apply. These usually amount to a few hundred francs and cover the administrative costs involved in processing the early repayment.

It’s important to note that, depending on the lending institution, the borrower may have the option of repaying his or her credit within 10 days of the revocation deadline at no extra cost.

Consequences of late monthly payments

It’s crucial to stay on top of late payments, as their repercussions can be significant and directly impact the borrower’s ability to obtain future credit. Here’s what you need to know:

• Payment on reminder: Paying systematically after receiving a reminder may seem inconsequential, but it is perceived by financial institutions as a sign of poor financial management. In this case, a code 03 will be entered in the ZEK (Central Office for Credit Information) register, which constitutes a serious obstacle to obtaining new credit or leasing, for a period of 5 years. Depending on the bank’s policy, the borrower may be entitled to two deferrals without additional interest charges, but this remains to be confirmed with the lending institution.
• Reducing monthly payments: If the borrower finds himself unable to meet his monthly payments, it’s advisable not to let the situation get any worse. It is essential to contact the financial institution as soon as possible to explain the difficulty and negotiate a suitable solution, such as a temporary reduction in monthly payments. Although this will result in a ZEK code 04 (less serious than a code 03), this proactive approach is preferable to accumulating debts that could lead to legal action.
• Cumulative arrears representing 10% of total debt: When a borrower exceeds this limit, the situation becomes critical. In such cases, the bank has the right to demand immediate repayment of the entire loan, plus interest. This situation can lead to legal proceedings, putting the borrower in a complex and stressful situation.