class=”sc-3778e872-0 cKDKQr”>
Anyone who needs a loan in Switzerland will soon be eating hard bread. Because: Consumer loan ceiling interest rate will be adjusted by one point as of May 1, 2023. It was 11 percent in cash advances and 13 percent in overdrafts. Due to rising interest rates, as reported by the Federal Department of Justice and Police (FDJP).
According to the FDJP, the new maximum interest rate applies to contracts signed after May 1, 2023. The interest rate is aimed at protecting the consumer and has been determined according to a fixed calculation mechanism since 2016. The determination of the maximum interest rate applies indefinitely, but is reviewed at least once a year and adjusted if necessary.
No visible change
Since the end of 2022, the relevant reference interest rate has been above 0.5 percent. Above this threshold, an increase in the maximum interest rate is envisaged. According to FDJP, it can be assumed that it will exceed this value in the long run.
Loan agreements with high interest rates are invalid according to the Consumer Credit Law. In this case, consumers only owe the loan amount, they do not pay the interest and expenses. (esd/sda)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
