Increasing your loan: extra funds and the total commitment
Understand loan increases: distinguish additional cash from the new total loan and check affordability, refinancing and all future payments.
Updated on · Budgetcredit
How much extra money do you really need?
A loan increase is intended to meet additional financial needs. The first important figure is therefore the amount of new money you want available. This payout is not automatically equal to the new loan contract amount. If an existing loan is repaid at the same time, the new agreement must also cover its outstanding debt.
A simple example: you need an additional 8'000 francs, and settling your existing loan on the agreed date requires 12'000 francs. Without other items, the new financing need is 20'000 francs. Of this, 12'000 francs goes towards settlement; 8'000 francs would be the additional payout. The example illustrates the split and is not approval.
Record these two figures separately. This avoids misunderstandings in a conversation or application. Also state whether the existing loan is with the same bank and whether you have other commitments. Budgetcredit offers a process for assessing a loan increase.
Why a fresh assessment is necessary
A loan increase is not an automatically available unused balance from an earlier approval. The lender must assess whether the new commitment is affordable. If a new consumer credit agreement within the Consumer Credit Act (KKG)’s scope is concluded for this purpose, affordability must be assessed under Art. 27a and 28 before conclusion. Your current financial situation is what counts.
A higher salary can help, but guarantees no particular amount. A more expensive home, children, maintenance payments or further financing may simultaneously reduce capacity. Previous reliable payments do not replace the assessment either. You should therefore not infer a new offer from a previous one.
The statutory assessment and desired contractual instalment remain distinct. The 36-month assessment cannot be bypassed by choosing an especially long contractual term for the new total amount. The actual instalment must also fit your daily life.
A new combined agreement or additional financing?
Depending on the provider and situation, the existing loan may be replaced by a larger agreement or additional financing assessed. What matters is not the label, but what remains outstanding after the change. Ask for written confirmation of which old obligations end and which continue.
Under a new combined agreement, the offered interest rate applies to the amount financed within it. This is especially relevant if the existing contract was inexpensive. A new rate may allow the additional need to be financed while making the outstanding old amount more expensive. Compare all remaining payments under both options.
Several instalments running in parallel can make it harder to keep track. Consolidating them may simplify administration, but does not automatically make excessive overall debt affordable. Before deciding, list outstanding balances, monthly instalments, end dates and early repayment conditions.
What new instalment remains affordable?
Start with regularly available income and complete household expenses. Include housing, health insurance, taxes, maintenance, existing commitments and reserves. An expected pay rise or uncertain bonus should not be the essential basis for the new instalment.
In a shared household, income contributions and costs must be allocated transparently. A partner’s salary must not simply be treated as freely available extra income while family expenses are missing. Equally, the same costs must not be deducted twice. A personal indication does not replace the documented application assessment.
Also consider a smaller project. If an extra 8'000 francs places too much strain on the household, postponing part of the purchase or using existing funds may reduce the need, for example. Your borrowing capacity should indicate a realistic limit, not recommend the highest possible loan.
Clarify these questions before signing
- What amount of new money is actually paid out?
- Which existing debt is settled and on what date?
- What are the new instalment, term and total repayment?
- Which existing agreements remain in force?
- Which additional products are planned, and what do they cost?
Always compare costs from the same point in time. Instalments already paid belong to the past; the new decision concerns future payments. A longer term may ease monthly pressure but postpone becoming debt-free. Consider whether that fits the useful life of the item financed.
Keep track of all existing payment dates until the change is confirmed. A conversation about an increase does not alter a contract. Only the assessed documents and confirmed completion establish which commitment actually applies afterwards.
Frequently asked questions
Is an increase guaranteed after punctual payments?
No. The new amount is assessed against your current finances and the lender’s criteria.
Is the new loan amount the extra money I receive?
Only if no other amounts are financed from it. With simultaneous refinancing, part is used for the existing loan.
Can an increase raise total costs?
Yes. A higher amount, longer term or changed interest rate can increase the remaining total costs.
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.
