Loan term
The term is the time over which you repay a loan, in monthly payments. Your contract must state the repayment terms: the amount, number and timing of the payments, and where possible their total (KKG, Art. 9).
A longer term lowers the monthly payment and raises the total interest. At Swizeo, CHF 10’000 over 12 months costs CHF 846.94 a month and CHF 163.25 of interest. Over 36 months it costs CHF 290.81 a month and CHF 469.25 of interest.
What it means for your loan
Swizeo offers 6 to 84 months, in whole months, and you choose. For a consumer credit, the law’s credit check counts as if the credit were repaid within 36 months, whatever the term (KKG, Art. 28).
Explained in full
Personal loan rates and costs in Switzerland
What a personal loan costs in Switzerland: the effective annual rate, the 10 % legal maximum, how the term changes the total, and which costs to check.
Sources
- Bundesgesetz über den Konsumkredit (KKG), SR 221.214.1, as in force on 1 September 2023Swiss Confederation, Fedlex, read on