Personal credit, bank credit, earmarked credit, consumer credit … what do all these names really mean? If you have never made a loan in Switzerland, or want to get your bearings better, we offer some explanations.

 

Why bank credit?

bank credit?

Where the term credit designates a loan, bank credit very logically designates a loan made from a bank. In the end, what is the difference between a loan and a bank loan? In reality, in Switzerland, there is no real difference. Indeed:

  • The credit sector in Switzerland is highly regulated, and only authorized banks can effectively offer loans.
  • Credit agencies, independent brokers and organizations offering credit always work with at least one bank and, ultimately, also offer bank credit.

 

Loan solutions without going through a bank.

Loan solutions without going through a bank.

In most cases, credit that does not go through a bank is illegal at best, and a scam at worst . Indeed, despite a highly regulated sector, there are many cases of scams in Switzerland. It is therefore advisable to remain cautious, especially if the person offering you a credit talks to you about a loan from individual to individual or about extremely low interest rates. The only notable exception to bank credit is leasing without a bank. Although it is not in fact a loan (the car is “rented” for the long term and does not belong to you), leasing without a bank is effectively a financing solution that does not go through a bank. This is the only exception.

 

Other appellations

credit loans

Even if all loans are for bank credits, there are, for marketing reasons above all, many different names for credits. The main examples are:

  • Consumer credit: in other words, a loan intended to buy consumer goods.
  • Assigned credit: a credit assigned to a particular type of purchase: car, etc.
  • Special credit: a loan granted to a natural person. We will also use the terms of private credit, personal credit for example.
  • SME credit: a loan granted to a legal person, namely a business or a company.
  • Revolving credit: this is a type of credit where the borrower can, at leisure, re-borrow money up to a limit defined by the bank. In Switzerland, this type of loan is not very widespread.
  • Real estate credit: a loan intended to finance real estate.
  • Credit consolidation, or repurchase of credit: a loan intended to redeem debts related to credits or credit cards. All the bonds are thus combined into a single new credit.

In the end, if the credit companies do not hesitate to multiply the names for marketing reasons, all these types of credits are bank credits.

 

Obtain a bank loan in Switzerland

Obtain a bank loan in Switzerland

The best way to avoid scams and make sure you benefit from an advantageous offer is to go through a credit specialist. Thus, our partner Copy Lender Bank will gladly offer you a free assessment of your situation in order to offer you a loan offer adapted to your needs as well as to your budget. contact for a free offer with no obligation.