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?
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.
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.
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
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.