Glossary

The Consumer Credit Act (KKG) of 01.01.2003 forms the legal basis for consumer credit agreements. It also applies to bank loans, personal loans, small loans, consumer loans and credit cards. The granting of credit is prohibited if it leads to over-indebtedness (Art. 3 UCA).

Installment protection or loan protection ensures that the loan is repaid even in the event of death, or in some cases in the event of unemployment or incapacity for work. For this purpose, the monthly installments are insured by the lender with a corresponding insurance policy.

The bank loan is repaid over a period specified in the contract, the so-called term. This is usually between 6 and 120 months.

With a personal loan, you can bridge financial bottlenecks, travel spontaneously or make unplanned purchases or expenses. Bank loans are often repaid in equal monthly installments. However, there are also personal loans on the market with flexible repayment terms.

Personal loans and bank loans are usually repaid in monthly installments at a fixed interest rate. The lower the interest rate, the longer the loan runs. This means higher expenses to repay the loan.

Installment protection or loan protection ensures that the loan is repaid even in the event of death, or in some cases in the event of unemployment or incapacity for work. For this purpose, the monthly installments are insured by the lender with a corresponding insurance policy.

The Central Office for Credit Information (ZEK) is the Swiss evidence center for creditworthiness information from credit transactions of private households. Every inquiry and movement for your personal loan, small loan and other consumer credit as well as leasing and credit cards are stored there. ZEK registers positive and negative reports from consumer credit, leasing and credit card obligations.

At www.zek.ch you can request your personal credit information free of charge.