Increase in the maximum rate for private loans from January 1, 2024

maximum rate for private loans

In January 2024, Swiss consumers will be faced with a new financial reality: the increase in the maximum rate for private loans. This development, significant in the Swiss credit landscape, will bring the rate to 12 % for cash credits and to 14 % for overdrafts. This is a key moment for consumers, who must not only understand the implications of this increase, but also act accordingly. This article aims to demystify this development and offer a clear overview of what it means for individual borrowers. Understanding these changes is essential to making informed and timely financial decisions in a changing environment.


  1. Objective of a maximum rate for private credits
  2. What does an increase in the 1% rate represent?
  3. Plan your private credit subscription
  4. Impacts of the increase in the maximum rate
  5. Our conclusion on this new rate increase

Objective of a maximum rate for private credits

Currently, in Switzerland, interest rates for private loans are regulated, offering consumers relatively advantageous conditions. These rates are determined within the framework of the federal law on consumer credit, which aims to protect borrowers from excessive rates and ensure fairness in the credit industry. The law establishes a maximum rate, preventing lenders from charging unreasonably high interest. Currently, these rates allow consumers to access loans for various personal needs on reasonable terms, thereby promoting stable financial management and supporting consumption. However, the increase expected in 2024 could change the situation, making credit more expensive and potentially influencing the financial decisions of Swiss households.

What does an increase in the 1% rate represent?

The comparison between credit terms current and those expected after the increase in the maximum rate in 2024 is crucial to understand the financial impact for Swiss consumers. Here is a numerical example to better understand the impact of this increase:

Credit amountCHF 30,000.-CHF 30,000.-
Interest rate10.95%11.95%
Repayment period60 months60 months
Interest costCHF 9,091.-CHF 9,994.-

With a private loan of CHF 30,000.- subscribed over a period of 60 months at 10,95%, the cost of interest paid over the period is 9,091.-. On the other hand, with an increase in the maximum rate for private loans at 11,95%, the additional cost would rise to CHF 903.- over the duration of the loan. This increase, although appearing modest at first glance, has significant implications for household budgets, particularly for those relying on credit for manage their current expenses or face unexpected expenses. Thus, this increase in the maximum rate for private credit highlights the importance for consumers to carefully plan their credit and financing needs. take advantage of current conditions more favorable before the 2024 change.

Plan to take out your private credit before the end of the year

For consumers considering to obtain credit before rates increase in 2024, it is essential to proceed with strategy and caution. First, assess your real needs and your repayment capacity. It's crucial to borrow only the amount you need and ensure monthly repayments are manageable within your budget. Second, compare offers using Lica services to find the best conditions.

Don't rush into a deal without exploring several options. Third, consider setting the term of the credit in a way that optimizes the total cost of the loan. ready. A shorter term may result in higher monthly payments but reduce the total interest cost. Finally, plan your financial future taking into account developments in the credit market. Set aside savings for emergencies and consider long-term investments to reduce your reliance on credit. These steps will help you navigate the changing financial landscape and maintain strong financial health.

Repercussions of the increase in the maximum rate for private credits

maximum rate for private loans

The expected increase in interest rate for private credits in Switzerland will have long-term repercussions for both consumers and the credit market. For consumers, this increase could lead to greater caution in the loan, which can limit discretionary spending and affect their ability to handle unexpected expenses. In the credit market, reduced demand for new loans could emerge, potentially influencing lender strategies. As for the future evolution of interest rates in Switzerland, it will depend on various economic and regulatory factors. We may see periodic adjustments in response to market conditions and monetary policies. Consumers should therefore remain informed and flexible in their financial planning to adapt to these changes and choose the right credit.

Our conclusion on this new rate increase

In conclusion, the planned increase in the maximum rate for private loans in Switzerland in 2024 requires immediate attention and action from consumers. It is essential to understand the impact of this increase on your personal finances and to act proactively to secure advantageous credit conditions as much as possible. Consumers must remain vigilant, knowledgeable and prudent in their financial management to effectively navigate this evolving landscape.

Do you have questions about the planned rate increase? 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!

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