You can easily save hundreds of francs this way

Most borrowers know this: Once a personal or business loan is taken out, installments are only repaid until maturity. This is why the Swiss pay so much for their loans each year. They can easily refinance this with cheaper providers like Lend.ch.

How is this possible when it is known that a contract is valid and must be complied with? Refinancing is a legal backdoor to better lending rates, made possible by the Consumer Credit Act, which regulates the right to early repayment. This allows borrowers to repay their loans at any time and at no additional cost. Because banks sometimes charge interest rates above 9%, while Swiss mass lending platform LEND offers loans at rates as low as 3.5%. That’s why it’s worth comparing existing loans as well. You can easily save hundreds of francs by refinancing according to the amount and maturity of the loan.

Refinancing is nothing but the restructuring of debt. As is known from the electricity or gas tariff, it is basically a contract change. And switching is just as easy with just a few clicks. But what exactly happens when you refinance? Borrowers negotiate better terms with a cheaper provider, pay off their old, expensive loans with the new loan amount, and pay a lower interest rate in the future.

But it’s not just a nice solution for loans. Even expensive credit cards that currently have an interest rate of around 12% can be refinanced. If you consider that banks are currently planning an increase in the upper interest rate limit, called the “usury limit”, the prospects are not so bright.

For example, an average loan of CHF 10,000 from a bank at an interest rate of 9.8% for 36 months incurs interest costs and fees of CHF 1,512.61. A 5.51% refinancing loan from LEND costs CHF 850.33. This is a very easy way to save CHF 662.28. At Lend.ch you can get a refinancing offer or apply for a loan from the comfort of your home.

Source : Blick