My friend is of Spanish resident holding B permit and working in Switzerland for around 7 years and she would like to apply a loan for 50,000 CHF , I just want to know if a net salary of 5000 CHF will be eligible to get a 50,000 CHF loan as i am aware that the less your salary highly likely will be the rejection from bank and once the credit score goes down its a real pain in ass.
Dear Ladies & Gentlemen,
Try creditgate24 or advanon, such companies are not so harsh with rules.
Highly unlikely, on this salary she could honestly expect to pay back Chf 500.-- per month, meaning 100 months payback for Chf 50k, not counting interests at around 8-10% per annum compound for such a risky deal
People who earn 5K a month should not take a 50K loan (unless situations demand it offc)
Paying back within 5 yrs at let's say 6% will be almost a thousand a month and about 7K of rent, spread it over 10 years and monthly goes down to some above 500,- but she will pay more than 16K in rent making it a very expensive way to get money
Besides that 50K loan is a high loan at such income which most institutes will not be willing to do.
For does w/o a Dutch background: rent == interest
Old habits die hard
6% on such a risk !!.....i think not probably around 10%
You need to have paid back the credit in not more than 36 months, that gives some 1'500 monthly rate. Seems highly unlikely you'd get that kind of amount with about 6k gross income.
Plenty of companies where you can apply on loan. Filling in the form just takes a minute or so and the pre-decison is taken automatically based on your permit situation, income etc. Of course a human then reviews the decison when you send in your paperwork and has the final say.
I once borrowed about 50K from the Migros bank. This was about 5 years ago. the interest at that time was 5.9% if I recall correctly, but it didn't matter as it was just a short term loan that I could repay fairly quickly. I asked to be payed out in cash because the transfer would have taken too long and so i ended up walking out of the bank with a huge wad of crisp and beautiful 1000CHF notes. They didn't even volunteer to give me an envelope. I had to ask for one. The Migros bank didn't raise an eyebrow at it at all so i guess it is an everyday occurrence for them. It was the Kantonalbank, where I payed in the money some 20 minutes later that kicked up a fuss and the teller called the manager who took me into his office and wanted to know exactly where I had got that money and how and why.
So borrowing money is not suspicious but repayment is.
Does one?
Credit Now has a calculator on their front page that suggests up to 84 months. 50k at 7.9% over 84 months at 770 pm
On the affordability question, the lender will complete a budget assessment, normally using gross income, quellensteuer rates, standard deductions for health insurance and then person specific items like rent, other liabilities etc. If that plus the loan repayments don’t put her in poverty persuant the Swiss definition and she has a clean record, she’ll likely get the loan. Whether it is wise or not is another question. On that I don’t judge.
What would the collaterals be for such a loan?
Something does not add up. With permit B he should be a Swiss resident. Or do you mean Spanish citizen?
These dispo loans typically don't have collaterals. That is the reason the interest rate is relatively high.
I'm sure they have ways of making you life miserable if you miss a payment nevertheless, so don't even start thinking of that.
I was assuming it was a typo and that he/she meant a Spanish citizen.
Affordability is based on up to 36 months duration regardless of how long the contract actually runs, according to the bankers association's brochure on the topic. Ok, you don't need to pay back in that timeframe, but you need to be able to.
The only thing I have taken a loan out for is the house
Actually, mine was for a house too, as a short-term bridge loan that I payed back when I got the money some months later, but it's a long story.
With my credit cards I borrow money continually throughout the month. With direct debit I repay it without interest. I even get a few miles.