Loan budgets by canton: why where you live matters

Your canton of residence belongs in a transparent credit assessment

For a cash loan within the scope of the Consumer Credit Act (KKG), the lender must assess affordability under the subsistence minimum calculation guidelines of the canton of residence. This is set out in Art. 28 KKG. A blanket salary multiplier for all of Switzerland is therefore insufficient. Your actual financial circumstances matter alongside cantonal rules.

This does not mean every canton has a statutory maximum loan amount. Two people in the same canton with the same salary may have different capacity because of rent, family size, maintenance, insurance or existing commitments. Residence is one part of the calculation, not an approval in its own right.

Which rules apply throughout Switzerland

The legal question is whether repayment is possible without drawing on the protected portion of income. Art. 28 refers to the subsistence minimum under debt enforcement law and additionally specifies rent actually owed, taxes calculated using the withholding tax table and commitments reported to the information office. The tax item concerns the statutory calculation requirement, not a blanket assumption that everyone actually pays withholding tax.

The assessment assumes amortisation within 36 months. A desired contract term of 60 months cannot replace this assessment. The contractual monthly payment schedule and statutory affordability are therefore two separate perspectives. Both must be understood before a budget creates expectations about a loan.

Where cantonal and personal differences arise

Cantonal guidelines describe basic allowances, permitted additions and the treatment of certain household arrangements. Not every difference can be represented in one table with a single amount per canton. The applicable version, children’s age groups, household structure and requirements for particular additions also matter. Social assistance budgets must not be used as the KKG basis without checking.

Zurich’s guidelines show, for example, that allocation between partners must also be considered in shared households. Such a rule is not implemented correctly by adding the partner’s entire salary to income while deducting only one person’s costs. A verifiable case requires consistent allocation of income and shared expenditure.

Moving can change several items at once: rent, commuting, childcare or tax calculation. Changing only the canton field is therefore not a reliable financing strategy. Use your actual residence and update the other details when your circumstances have changed.

A budget example without false precision

Suppose personal planning leaves 500 francs a month after all relevant expenses. Initially, this is only a personal surplus. It is neither automatically an allowable loan instalment nor an approved financing amount. Some items may be treated differently in the statutory calculation, and borrowing costs also arise.

It would be wrong simply to multiply the 500 francs by a desired term of 84 months and offer the result as available credit. A sound indication distinguishes inputs, assumptions, statutory assessment logic and the individual offer. If an expense is unknown, it must be clarified or identified as uncertain. Unknown does not mean free.

How to make the calculation understandable

• Current canton of residence and household structure.
• Documented regular net income and any partner contribution.
• Actual housing costs, health insurance premiums and necessary additions.
• Children, maintenance and existing loan or lease commitments.
• The cantonal guideline used, its applicable version and tax assumptions.

You do not need to classify all these rules legally yourself. But you should be able to check your own information and see which values were estimated. Ask questions if a calculation differs substantially from daily reality. A low statutory minimum item does not make your real costs disappear.

Use the borrowing capacity calculation for guidance and record the requested loan amount separately. Only the documented application assessment can establish what amount is possible on what terms. A cautious personal budget with reserves remains useful even after approval.

Frequently asked questions

Does each canton have a fixed maximum loan?

No. The amount follows from the individual case and assessment. Cantonal guidelines form only part of the calculation basis.

Is knowing the net salary enough?

No. Reliable borrowing capacity cannot be established without household details, costs and existing commitments.

Is an online budget a binding loan offer?

No. It is an indication based on inputs and assumptions. Documents and individual assessment remain necessary.

Sources and information date

Information as of 13 October 2026. The applicable rules, individual assessment and contract documents are decisive.

• Consumer Credit Act, Art. 28 and 31
• Canton Zurich: subsistence minimum guidelines under debt enforcement law

Credit must not be granted if it would lead to over-indebtedness. A budget calculation provides a non-binding indication, not a loan offer.