Since the SNB abandoned the floor rate, making a loan in Switzerland as a cross-border worker has never been so advantageous! What rate to expect, and where to find the best offer?
Why a loan in Switzerland?
As a cross-border worker, borrowing from Swiss banks already has an advantage in terms of security. As the repayment of the cross-border loan is made in USD, ie the same currency as your salary, you have no risk linked to a disadvantageous future USD / Euro exchange rate. Then, the loan in USD being contracted with Swiss banks, you benefit from immediate advantages linked to Swiss banking security:
- Greater security.
- A greater guarantee of confidentiality of your data.
In the case of a loan in Switzerland, the interest rate for private loans varies according to each one’s own situation and the risk incurred by the bank. In other words, if your situation is deemed healthy, the proposed interest rate will be low. However, cross-border workers generally benefit from a stable situation in Switzerland, and a reduced cost of living in France, the rates offered are often more advantageous than in France ! And this is all the more true since the abandonment of the floor rate!
What steps to obtain a loan as a cross-border worker?
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Above all, you have to go to the right company. Indeed, with the same situation (income, budget, family situation,…), different banks may offer you a different interest rate. For this reason, it is best to contact a credit broker who will analyze your budget and find the best opportunity for you. You will save time and benefit from the best possible offer.
Real cost: an example of a cross-border loan.
Mr Dubois lives in France and has worked in Switzerland with the same employer for 5 years, on the benefit of a G permit. He is single and has no children. With an income of 6,000 net USD / month, he wishes to borrow 20,000 USD in Switzerland. To do this, he turned to a credit agency. After having provided the documents necessary for the study of his budget (salary sheets, permit, certificate of non-bank prohibition), he is offered a rate of 9.95% with a reimbursement over 2 years. Mr Dubois will then pay monthly payments of 918 USD / month over 24 months.
Avoid making too many requests
A final point to which cross-border commuters looking for a loan in USD do not always pay attention to is that in Switzerland, all credit requests are registered with a central. It is therefore advisable to avoid making too many requests at once, and to wait for an offer before each new loan request.