The term “consumer loan” is used to describe loans which serve to finance the purchase of consumer goods or services. Consumer loans can be used for many different purposes including the purchase of furniture, cars or electronics.
In Switzerland, the term is used in reference to loans which fall under consumer credit laws. When used in this way, the term “consumer loan” refers to a loan which meets the criteria laid out in consumer credit laws, including limits on interest rates and termination.
To qualify as a consumer loan as per Swiss consumer credit laws, a loan must be issued to a private individual and have a loan term of at least three months. The loan amount must be between CHF 500 and CHF 80,000. Personal loans with terms shorter than three months or initial principle of less than CHF 500 or more than CHF 80,000 do not qualify. Business loans are not regulated by Swiss consumer credit laws.
Interest rates of Swiss consumer loans cannot exceed a maximum rate set out in consumer credit laws. This maximum rate varies along with overall interest rates. Currently, the maximum annual interest rate which can be charged for a consumer loan is 10% for cash loans and 12% for credit card loans.
Consumer loans are available as cash loans, credit card loans, installment payment agreements, fixed rate loans, overdraft loans and leasing agreements.
Consumer loan comparison