Available loan types for borrower
There is a wide range of loan types with which the borrower can quickly borrow money from a bank. There are various types of credit available, from which you can choose the right model.
- Personal loan: This is a consumer loan for private individuals, which should not be confused with a loan from private to private. It usually does not exceed the sum of a few thousand and is suitable for private purchases such as a car or furniture.
- Instant loan: Getting a loan immediately is prohibited under the Swiss Consumer Credit Act. An instant loan would be particularly advantageous if, for example, you have to pay an important debt on a certain date and you still lack the necessary amount at the moment. However, the legislator provides for a two-week waiting period before payment to impose a reflection period on the borrower and to prevent Switzerland-wide debt. After all, our 24-hour response guarantee is very good for you. This will immediately determine whether you will receive the desired amount and a reasonably quick loan is possible.
- Small loan: When it comes to a small loan amount, one speaks of small loan in Switzerland. The loan amount usually amounts to only a few hundreds or small thousands and serves to bridge a financial bottleneck during the course. It is therefore suitable as a quick loan for the settlement of, for example, an unplanned additional payment or the like.
- Cash loan: A cash loan covers the entire credit line and primarily relates to the type of payment. It is to be regarded as a name for all forms of loans, including the online loan. However, nowadays you don’t get a cash payment from reputable credit institutions, instead the loan payment is made by transfer to a private account at the borrower’s bank.
- Online credit: If you wanted to take out a loan until a few years ago, then a visit to a regional bank branch was inevitable. With digitization, the possibilities for borrowing have changed and nowadays it is faster and cheaper to apply for a small loan online.
- Consumer credit: The consumer credit is a loan that can be used for personal wishes. In other words, to increase your own standard of living, to bridge a dry spell in the financial area or the like.
In itself, it is also divided into different categories for what a loan is intended for:
- Loans for private customers: This is a loan for people who do not do business. There are fixed principles regarding effective annual interest rates and the price regulation. As with any loan, an age of majority is absolutely necessary. This form of personal loan has a subdivision:
- Acquisition loan (see consumer loan)
- Training loan (to finance training)
- Car loan (as an alternative to leasing when buying a vehicle in Switzerland)
- Guarantee credit (for the assumption of guarantees or sureties)
- Building loan or building finance (for the construction, renovation, acquisition of real estate, usually with a long term, since the amount is usually very high)
- Mortgage loan (special form of cash credit)
- Pre-financing (provisional as final financing is not yet clear)
- Continuing education loan (to finance continuing vocational training)
- Securities loan (loan on securities)
- Interim financing (for the repayment of residual amounts such as the final fee for real estate loans)
- SME loan immediately for business customers: Here, different rules apply to the process, the granting and the course of the loan. This is not least due to the fact that no private individuals make use of the loan here, but rather so-called “full traders”, who have a purely business project in mind with the loan. It is therefore not to be regarded as a direct personal loan.
Depending on the type of loan you choose, the process is different. As a rule, all loans are designed in a similar way and you get the small loan relatively quickly if the required creditworthiness is fulfilled as a prerequisite. You only get a cheap loan if you don’t set the loan amount too high and also set the installments over a longer period of time. It is generally advisable to always carry out a credit comparison in order to get the best conditions.