The cost of living has always been relatively high in Switzerland. As an immigrant, it is therefore sometimes difficult to establish yourself financially in the country. This is why foreigners often resort to applying for credit to obtain liquidity. The Federal Statistical Office also shows that people who do not have Swiss nationality contract more often consumer credit than the Swiss. Even if the procedures are a little more complicated, it is entirely possible to obtain credit as a foreigner in Switzerland. We explain how to proceed in this new article!
What are the criteria for obtaining a loan?
The existence of a regular income is the prerequisite for any credit application! However, there are a number of conditions that complicate the process of a loan request when we are strangers. It is therefore imperative to know these different specificities before applying for credit as a foreigner. Indeed, sufficient income is the first condition to be respected but many additional factors conditions for obtaining a loan. These include nationality, status, work permit and length of stay in Switzerland.
Applying for a loan – The different situations when we are foreigners
When applying for credit as a foreigner, you should know that banks establish different profiles on the main basis of the residence permit you hold. so here's the different residence permits which may potentially give rise to a loan:
Depending on the license you hold, the conditions for granting a loan will not be the same from one bank to another. In order to facilitate your procedures, we have therefore drawn up detailed descriptions of each of these situations.
Obtain credit as a foreigner with a C permit
If you have a C permit, the conditions for obtaining credit as a foreigner are very flexible! In general, people with a C permit are entitled to the same treatment as those with Swiss nationality. In practice, all banks therefore agree to grant a loan to a holder of a C permit.
Here are the minimum criteria to be met to obtain credit as a foreigner with a C permit in Switzerland:
- Be of legal age (18 years old)
- Have a minimum income of 3,000.- net
- Be able to prove your income
- Do not be in a situation of over-indebtedness
Of course, other specificities may apply depending on your personal situation. Therefore, it is always recommended to take advantage of services of a wise intermediary. This can assist you in repairing your file and increase your chances of obtaining your financing.
Apply for a credit as a foreigner with a B permit
If you have a residence permit B, the selection criteria are a little stricter. Indeed, it will only be possible to obtain your credit as a foreigner with a B permit if your permit has been valid for at least 6 months. However, some banks do not grant credit to foreigners with a B permit with a date of establishment lower than 12 or 24 months.
Here are the different criteria to be met to obtain private credit with a B permit:
- Be of legal age (18 years old)
- Have a minimum income of 3,000.- net
- Be able to prove your income
- Do not be in a situation of over-indebtedness
- Have held your B license for at least 12 months
Never solicit several banks at the same time!
Be careful not to contact several banks when applying for credit! This applies to all applicants but more particularly to license B which can be refused from one bank to another depending on the criteria of each establishment. Indeed, as we have seen, some banks do not agree to lend funds to holders of a B license for less than 12 months or even 24 months with certain establishments. If you make repeated requests and they are refused, these steps will be notified to the credit center (ZEK) and your chances of getting a loan will be reduced.
In this context, take advantage of the services of Lica to ensure that you obtain your financing without delay and at the best market conditions. Our experts know how to prepare your file and advise you 7 days a week free of charge!
Applying for a credit as a foreigner with a G permit
The G permit is intended for cross-border commuters. They work in Switzerland, but do not live there. The majority of people with this residence permit come from Germany, France, Italy or Lichtenstein. To obtain private credit as a cross-border worker with a G permit, you must have had a valid G permit for at least 3 years.
As a G license holder, the criteria will be as follows:
- Be of legal age (18 years old)
- Have a minimum income of 3,000.- net
- Be able to prove your income
- Do not be in a situation of over-indebtedness
- Have held your G license for at least 36 months
However, some banks systematically refuse applicants holding a G permit. This is why we recommend that you contact us to ensure that you contact the right service provider before submitting a loan application.
What are the conditions with a legitimation card?
Legitimization cards are reserved for ambassadors, employees of consulates or large NGOs as well as the families who accompany them. The criteria for obtaining a private loan may vary from one bank to another. However, the initial criteria are the same as for holders of a C license.
- Be of legal age (18 years old)
- Have a minimum income of 3,000.- net
- Be able to prove your income
- Do not be in a situation of over-indebtedness
- Specific criteria according to each bank
Please note, if you are a diplomat or holder of a legitimation card, you can only apply for credit if you are domiciled in Switzerland. Given that several banks in Switzerland do not systematically grant financing to holders of a legitimation card, it is crucial to seek the services of a recognized intermediary to negotiate the best possible conditions. A knowledgeable broker will be able to put different establishments in competition and thus obtain better conditions.
What to avoid doing when applying for credit as a foreigner in Switzerland
In principle mistakes to avoid when applying for a loan are the same as for an applicant of Swiss nationality. However, it is always useful to remember a few rules that will prevent you from being refused when applying for private credit.
Never solicit several banks or intermediaries at the same time
When you make a request, the banks and certain intermediaries announce it to the central ZEK file. In the event of refusal, the latter is therefore registered with this centre. In the event that refusals increase, the following credit application may be refused solely on the grounds of the previous refusals. Therefore, it is always recommended to be patient and not solicit only one intermediary of good reputation.
Submit a request to a bank if you do not meet the main criteria
This may seem logical and you can easily guess that the only result will be a refusal. If in doubt about your file, do not hesitate to Contact us to discuss it with one of our specialists. We advise you in 12 languages throughout Switzerland.
Falsify or transmit false information
In such a situation, you risk not being able to obtain financing for a long time. Indeed, fraud is a case systematically reported to the central ZEK credits. The establishments that consult this register in the context of a future request that you submit, will systematically refuse to run the slightest risk if you are the bearer of a " fraud code“. It is therefore a very bad idea to falsify documents or even to arrange information about yourself in order to obtain financing. If your situation does not allow you to obtain private credit, take the time to contact us and we will tell you the best way to obtain your financing.
Our conclusion for obtaining a loan as a foreigner in Switzerland
When we need money, it can be very frustrating to have to wait or worse to be refused. This is why it is always important to work with a recognized intermediary who will be there to help you obtain your private credit. As you will have noticed, the criteria may vary from one situation and from one establishment to another. Defining a good strategy before submitting your application is therefore crucial to obtaining the desired funding.
Now that you know the different criteria for obtaining credit as a foreigner in Switzerland, take the time to contact our specialists. They will accompany you in a neutral and confidential way in your steps.
Do you have any questions before applying? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!
