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Loans in Switzerland for foreigners and cross-border commuters – here's how it works!
Switzerland attracts people from all over the world – and with them the question of financing options, especially when it comes to loans. Foreigners and cross-border commuters living and working here can quickly encounter obstacles in this area. If you are American, Portuguese, Spanish or of another nationality, work in Switzerland and would like to apply for a loan, this article will tell you what options are available and what you need to bear in mind.
Can foreigners take out a loan in Switzerland?
Yes! In principle, foreigners can obtain a loan in Switzerland if certain conditions are met. Swiss banks and crowdlending platforms carefully check the creditworthiness and residence status of all applicants. The most important requirements are:
Residence in Switzerland: A permanent residence in Switzerland is required for most loan products. This applies in particular to personal loans.
Valid residence permit: The type of residence permit (B, C or G) plays a decisive role. B or C permits are generally preferred, as it indicates a longer period of residence and thus greater financial stability. There are special regulations for G permits (cross-border commuters), which we explain below.
Regular income in Switzerland: A stable and sufficiently high income is essential. The length of employment and the type of employment contract (permanent preferred) are also important factors.
Positive credit check: It goes without saying that you should have no outstanding debt collection proceedings in Switzerland. And even though Switzerland has its own credit rating system (Central Credit Information Office – ZEK) and its own credit agencies such as Intrum and Crif, negative entries in foreign credit agencies (e.g. SCHUFA in Germany, KSV in Austria) can affect your creditworthiness. It is important to be transparent and disclose all relevant information.
Swiss bank account: Many lenders require an account with a Swiss bank.
Loans for foreigners and cross-border commuters
American, Portuguese and Spanish citizens who live and work in Switzerland generally fall under the above conditions. With a valid residence and work permit (B or C) and a permanent employment contract, the chances of obtaining a loan are usually very good, provided that you have a good credit rating.
For cross-border commuters who work in Switzerland but live in a neighbouring country (Germany, Austria, France, Italy), borrowing in Switzerland is also theoretically possible, but there are a few special considerations. In addition to the usual proof of income, proof of residence abroad and a G permit are often required. However, many lenders do not lend money to commuters as a matter of principle, as they assume an increased credit risk.
There are special conditions for citizens of Liechtenstein: they are treated in much the same way as Swiss citizens and find it easier to obtain a loan.
Does it make sense to take out a loan abroad instead of in Switzerland?
The question often arises as to whether non-Swiss citizens are better off taking out a loan abroad, for example in Germany or Austria, while working in Switzerland. In general, this is not recommended if your main place of residence is in Switzerland:
Interest rates and fees: Swiss loans often have lower interest rates than in many neighbouring countries, especially if you have a good credit rating.
Currency fluctuations: If you take out a loan in a foreign currency, there is a risk of currency fluctuations. If the Swiss franc rises against the loan currency, the loan can suddenly become significantly more expensive.
Legal framework: Swiss consumer credit law offers a high level of protection for borrowers. With a loan from abroad, you are subject to the law of the country where the loan was taken out.
Conclusion: Foreigners also have a chance of getting a loan in Switzerland
So, expats living in Switzerland can also get a loan. The exact conditions depend on your residence status, income and credit rating. By the way, interest costs can usually be claimed on your income tax return in Switzerland.
At LEND, you can apply for personal loans, business loans or mortgages without a Swiss passport – in addition to a good credit rating, we require you to be of legal age, have a Swiss residence and a Swiss bank account.
You can find more useful insights regarding loans in Switzerland in our blog:
