The banks always issue a loan without a co-applicant if the credit applicant’s creditworthiness is sufficient for the loan.
This means that the loan applicant must have faultless Credit bureau information and be economically able to pay the monthly installments from his income. If this is not the case, the bank will grant the loan with guarantors if the guarantor has the relevant requirements. A loan with a guarantee is necessary, for example, if the applicant has a negative Credit bureau information, if his income is too low, or if the income cannot be attached, for example because it is unemployment benefit or child-raising allowance. Basically, the banks are inclined to grant a loan with 2 people , because it brings more security.
The second person, if it is not a co-applicant like the spouse, signs a joint and several guarantee and undertakes to pay the installments instead of the borrower if he or she cannot or does not want to.
How banks secure loans
Normal consumer loans are usually given as so-called blank loans. This means that the borrower only has to prove his income through a pay slip. For additional security, the banks often demand that the loan be taken out with residual debt insurance . The residual debt insurance gives both the borrower and the bank additional security. It pays the installments if the borrower is ill for a long time or becomes unexpectedly unemployed. In the event of death, the residual debt insurance will even replace the entire loan amount. Residual debt insurance is a special type of risk life insurance, but it has its price. This often makes a loan significantly more expensive. Therefore, if the residual debt insurance is not desired, you should negotiate with the bank. A loan with collateral from the bank can also be granted in another form, for example by including a guarantor in the contract or by assigning other collateral.
If the borrower is new to the employer, banks require the loan to be submitted with an employment contract to ensure that it is a permanent job and not just a temporary job. In such cases, the borrower must not only submit current proof of income, but also a copy of his employment contract.
Use the disposition correctly
Many consumers have a disposition credit in a certain scope at their disposal in connection with the management of the current account. However , the overdraft facility loan is significantly more expensive than a normal installment loan. The average interest rate for overdraft facilities is 12 percent. This means that the overdraft facility is not suitable if the money cannot be returned over a longer period of time. The overdraft facility should always be used if you are able to make up for it in a maximum of three months. Otherwise, the installment loan is always the better choice.
What to consider when borrowing
When taking out an installment loan, you should not only make sure that the interest rate is cheap. Especially with large loan amounts, it can make sense that the loan has a special repayment so that larger amounts of money can be paid in addition to the installments during the loan term in order to reduce the remaining debt or shorten the term.
If you had a negative Credit bureau entry that is done, you can run into problems if you apply for a loan with Credit bureau done . Many banks then want to additionally secure the loan. A loan with a completed Credit bureau entry is usually only granted if the borrower can provide additional security in the form of a guarantee.
Once a loan has been approved and the contract has been signed, a borrower must go to a Swiss Post branch and apply the Post Ident procedure if he has applied for the loan online. You need a valid identity card or passport. If the ID has expired and there is no passport, you should immediately have a provisional ID card issued. A loan with a provisional ID card is possible. However, the bank may later request a copy of your ID.
Banks give credit despite mortgage
Many consumers who have taken out a mortgage in connection with the purchase of a property have to bear correspondingly high financial burdens from this mortgage. However, if you use the property yourself, you save the monthly rent, so that a consumer loan is granted if the creditworthiness is appropriate. A loan despite a mortgage is not uncommon, but sometimes it also has to be secured.