Loan for the unemployed in Switzerland
If you are unemployed in Switzerland and looking for a loan, it can be a real challenge. But don't worry, there are ways and solutions that can help you make ends meet even in this difficult situation. In this blog, we explain what you should look out for and what options are available to you.
Why is it difficult to get a loan as an unemployed person?
Lenders pay close attention to the creditworthiness of their customers. A regular income is one of the most important factors. Without a steady income, the likelihood that you will be able to repay the loan decreases, which increases the risk for the bank. This is why many banks reject loan applications from unemployed people or charge very high interest rates.
Credit without an employment contract - is that possible?
In short: No, in Switzerland it is not possible to get a regular loan without a fixed employment contract. The Consumer Credit Act (KKG) stipulates that credit institutions must ensure that a borrower is not overindebted. This also includes a credit check, which is usually negative for unemployed people, as unemployment benefit (RAV) is not counted as fixed income. Unemployed people should be wary of providers who offer
How do I get a loan without an employment contract?
How to get a loan without an employment contract is listed below:
1. Guarantee
One common option is to provide a guarantee. This means that another person (for example a family member or friend) guarantees your loan. If you are unable to pay the instalments, the guarantor will step in. This significantly increases your chances of getting a loan.
2. Securities
If you have collateral, such as property or valuables, you can offer these as security. This gives the lender additional security and increases your chances of being approved for a loan.
3. Credit from private individuals
Another option is to turn to platforms for loans from private individuals. Here, private individuals lend their money to other private individuals. This type of loan can be more flexible and the requirements are often less strict than with traditional banks.
4. Social loans
In some cantons there are special social loans for people in financial difficulties. These loans are often granted by charitable organisations or foundations and can be available on very favourable terms.