In 2020, the interest rate for consumer loans will remain capped at 10% for payday loans and 12% for credit cards.
No change in 2020
As the online newspaper 20min explains in its article, the maximum interest rate will not change in 2020, although it will be reviewed and if necessary adjusted annually.
It will stay at 10% for cash, consumer and payday loans.
As the Federal Department of Justice and Police announced on Friday, November 22, it will remain at a maximum of 12% for credit cards.
How is the interest rate defined?
The maximum interest rate is checked and adjusted annually if necessary.
It is calculated from the three-month Libor rate calculated by the LifeSavers Bank and a surcharge (ten percentage points for cash advances, twelve for credit cards and overdrafts).
The result is rounded to the nearest whole number, the press release says.
Since the three-month Libor continues to be negative, the Federal Department of Justice and Police has once again set the maximum interest rate at the minimum prescribed in the Ordinance on the Consumer Credit Act.
Lowest loan rate in Switzerland?
This news is indeed excellent for the Swiss consumer who will ensure that he maintains the lowest interest rate in Switzerland for all new payday loans until 2020
If, on the other hand, the Libor rate were to rise one day, for example to 3%, the maximum rate for consumer credit could rise to 13% (maximum 10% plus 3% of the Libor), as in 2014 or earlier
The maximum rate for payday loans reached in Switzerland was 15% for a very long time. It is currently 33% more advantageous as it is blocked at 10%.
Can my credit rate change?
No, no matter what happens year after year, your private credit remains protected. This means that if one day the average rate in Switzerland rose by 1% or more, your credit would not be affected and the rate would not be increased. The “new” interest rate only affects newly signed loans, but all previously signed loans keep their terms.
It is unlikely that consumers will notice an increase in their rate on the way there.
However, if you want, you can simply make a request to review your tariff and contact your advisor directly if an offer is not available.
In fact, banks do regular promotions to attract new customers, giving them the opportunity to take advantage of loans at a cheaper rate.
At Moneyleap, we offer you the opportunity to review your terms and conditions every year to ensure you always get the best, but we can do it anytime, according to your needs. Contact your personal advisor who will explain the best way to handle your file.
What about Moneyleap in all of this?
Moneyleap is the Swiss financing platform that helps you to finance your loan on the best terms.
As a partner of banks, our experience and agreements with the largest financial institutions enable us to offer our customers the best interest rates year after year
- Amounts from 3,000 to 400,000.
- A quota of 4% or more
- Flexible terms, up to 120 months
- An answer in less than 24 hours
- Consultants are available and available to you.
We are happy to help you with the implementation of your projects, no matter what they look like.