If some countries allow students to take out a loan to finance their studies, this is not necessarily the case in Switzerland. What is the exact situation, and what are the possibilities for financing training? Our explanations and advice.
Can a student get credit?
If we refer to Swiss law, the law on unfair competition stipulates that “the granting of credit is prohibited if it causes over-indebtedness of the consumer” (article 3 LCD). In fact, banks use this article to define, for each applicant, a score that reflects their situation. This scoring depends on a number of factors, and places great importance on the applicant’s income. In fact, a student without a fixed income will not have sufficient scoring to hope to be able to obtain a loan from a bank.
It is important, however, to understand that it is not the student status that blocks the possibility of obtaining a loan, but the absence of regular income. Thus, some students with a fixed income could, in theory, obtain a credit to finance their training.
Finance your own training
Concretely, a student with a fixed monthly income of at least 2,900 USD gross could thus obtain a loan in order to finance his studies. This case can thus arise when an employee wishes to finance a school of the on-the-job training type.
Financing the training of your children
A training loan can also be made to finance the education of their children. Thus, anyone with a regular income and wishing to offer their children expensive training (private school, specific institution) could theoretically have recourse to a private loan from a bank in order to obtain the necessary funds. In this case, the reason for the loan (training) is not taken into account: only the situation of the applicants (the parents) will be taken into account to determine the possibility of obtaining or not a loan.
Conditions for granting
If it is necessary to have a fixed income of around 2,900 USD gross minimum, other conditions may apply depending on the situation of the borrower: type of work permit, family situation, possible background financial, budget,… To know if a training loan is feasible, the best is to contact a personal credit specialist like Multicredit, who also offers training credits.
Alternatives to training credit
When a “classic” private loan is not possible, other alternatives remain, in particular scholarships granted by the cantons or sometimes by private institutions.