Good afternoon all, I hope life is treating you kindly?
I was wondering if any of you have ever received a loan from a bank here, specifically in Zurich and if so how was your experience?
Especially for loans of around CHF 50000 as I would be looking for around this much but I’m wondering if this is often approved or if I’d just be overreaching without an especially high paying job.
Thank you so much for taking the time to read and happy to add more context if it would help, sending my warmest wishes regardless of if you can help or not!
It would be your ability to repay the loan that would be any financial institution’s prime concern. Do you have Permis B? Not so good - a C would be better. By how much does your income exceed your outgo? Etc.
I’m about to finish repaying a migros bank personal credit.
I have a B permit, I pay 1.5% above the minimum interest rate possible at the time.
The loan amount depends on the income, but it also depends on your expenses, so what bowlie said: ability to repay. By law, the bank has to make a bit of research to avoid emitting a loan that may make you go bankrupt. In practice, this means you fill up a form telling your expenses in housing, health insurance, other credits, etc. I’d recommend to be honest on these questions, this prevents the credit becoming a burden. So, income matters but someone with high income paying alimony for 3 children will be probably in worse financial situation than someone with average income and lower expenses.
Usually banks (migros, cembra) have online calculators. I did this some years ago, and what the calculator said was more or less the contract I ended up signing.
About the credit terms, in the standard terms it’s not possible to reduce the monthly payment. It’s only possible to pay more every month to end it sooner. I know I could have gone to other bank to refinance this and get a lower monthly payment, but thankfully it was not necessary. Anyway, pay attention to these details. Just because you can repay now X amount a month, it’s not ensured that you can do the same 2 years later.