Compare loans: interest, instalments and total costs
Compare Swiss personal loans on the same basis: amount, term, effective annual interest, total repayment and optional extras.
Updated on · Budgetcredit
A useful comparison starts with the same borrowing need
A loan comparison is meaningful when you place actual offers for the same amount and term side by side. A monthly instalment of 450 francs cannot usefully be compared with one of 600 francs if the first contract runs two years longer. First write down how much you genuinely need and when you want to be debt-free.
Distinguish the amount paid out from the total repayment. The loan amount is available for your project. Over the term, you repay this amount plus the agreed interest. Additional insurance may create further costs. Keeping these figures separate helps you see sooner whether an offer fits your needs.
Do not compare an approved offer with a purely advertised rate. A stated minimum rate only indicates a possible lower limit. Your personal terms are established after assessment. Our article explains the main factors: Loan interest and creditworthiness.
Why the effective annual interest rate matters
The Consumer Credit Act (KKG) distinguishes between a loan’s total costs and the effective annual interest rate. The latter expresses the borrowing costs included under the statutory rules as an annual percentage. It creates a common basis for comparison. Nevertheless, also check the repayment schedule and total amount in francs. Percentages alone do not show how long you will be paying.
For additional products, ask explicitly whether their price is included in the amount quoted and whether taking them out is voluntary. An apparently small monthly addition accumulates. An illustrative 20 francs a month would total 1'200 francs over 60 months. This is simple addition for illustration, not the price of any particular insurance.
The legal basis for total costs and the effective annual interest rate is in Art. 5 and 6 of the Consumer Credit Act. Not every possible personal loan falls within its scope.
Put these details side by side
| Detail | What to check |
|---|---|
| Loan amount | Same amount and same purpose |
| Term | Same number of months for comparing costs |
| Effective annual interest rate | The rate offered to you, rather than an advertised minimum |
| Total repayment | Sum of all agreed payments in francs |
| Additional products | Whether optional, separate price and benefits |
| Early repayment | Rights and the practical procedure in the contract |
Also note who actually lends the money and who acts as intermediary. Brokering and subsequent lending are different steps. A conversation, calculation or submitted application does not yet mean that a contract exists or money will be paid out.
A small instalment is not automatically cheap
Suppose two purely illustrative payment schedules provide for 500 francs over 48 months and 430 francs over 60 months respectively. The totals are 24'000 and 25'800 francs. The second instalment eases the monthly burden by 70 francs but results in 1'800 francs more repayment. Without an identical payout and complete contract costs, even this example would not be a conclusive offer comparison.
A short term can be financially attractive yet place too much strain on your budget. What matters is an instalment you can afford even when an unexpected bill arrives. Reserves for annual costs, health, repairs and income fluctuations should not be absorbed entirely by loan payments. Read our comparison of longer and shorter loan terms.
For loans within the KKG’s scope, a long contract term also does not replace the statutory affordability assessment. This generally uses repayment within 36 months as its benchmark. The contractual instalment and assessment calculation serve different purposes.
Five steps towards a useful decision
- Establish your actual funding need and account for money already available.
- Calculate your monthly budget with complete fixed costs and reserves.
- Compare offers for an identical amount and the same term.
- Check interest, total repayment and additional benefits in writing.
- Decide only once outstanding questions and differences are clarified.
Before making a formal enquiry, ask what assessment it triggers and which lenders will receive your data. A non-binding calculator is different from a full loan application. Avoid inconsistent information across several applications completed in parallel. A clear starting position makes the comparison easier to understand and prevents unnecessary follow-up questions.
The cheapest contract is not automatically the right decision if you do not need the full amount. Also compare the option of borrowing less or financing part of the project later. A good result leaves enough financial room for everyday life.
Frequently asked questions
Is the lowest advertised interest rate guaranteed?
No. The advertised minimum is not a personal promise. Your actual interest rate depends on the assessment and the lender’s offer.
Should I compare only the monthly instalment?
No. For the same loan amount, also compare the term, effective annual interest rate, total repayment and additional products charged separately.
Does a longer term make a loan easier to afford?
It can reduce the actual monthly instalment. With other conditions unchanged, however, it increases interest costs and does not replace the statutory affordability assessment.
Sources and information date
Information as of 13 October 2026. Provider conditions may change. The individual assessment and contract documents are decisive.
Credit must not be granted if it would lead to over-indebtedness. A budget calculation provides a non-binding indication, not a loan offer.
