The ordinary loan
- Purpose of the ordinary loan
The ordinary loan can be used, for example, to face unforeseen expenses, finance holidays or studies, repay a consumer loan or a credit card with a higher interest rate, repay debt collection, buy a car, etc,
- Interest rate
The monthly interest rate is 0.48% (5.9% yearly), including death/disability insurance, unless changed in the meantime. It is fixed for the duration of the loan,
The monthly interest is paid at an effective discount rate as the interest rate is applied monthly on the remaining capital.
- Duration of the loan
The minimum duration of the loan is 3 months and the maximum is 84 months.
- Amount granted
The minimum amount that may be requested is CHF 2,000,
The maximum amount that may be granted is 7x the borrower's net monthly take-home pay,
The maximum amount granted to a member depends on his/her contractual status and the level of indebtedness.
- Monthly repayment ratio
The monthly loan repayment of one or more ordinary loans cannot exceed 30% of net monthly salary. If a member has other loans of the same type granted by another institution (credit cards, consumer loans, car leasing) these will be taken into account in the calculation of the monthly repayment.
- Deferred repayment of the 1st instalment
Members may request to delay the repayment of the 1st instalment only. The Mutual Association will decide on the approval after having studied the request, but the deferral cannot exceed 6 months.
- Deadline for the submission of a new ordinary loan application
Members who have ordinary outstanding loan(s) can submit a new ordinary loan request at any time as long as one monthly instalment of the last ordinary loan granted has been deducted from their salary.
The necessary documents to be provided at one time are:
- the loan application form duly completed,
- a copy of the current contract of employment;
- a copy of the last salary pay-slip;
- e. if the borrower has external loans/debts other than the Mutual Association (incl. car leasing, credit cards, debt collections, housing loan, mortgage loan, consumer loan) the last statements must be added to the request,
- f. If the borrower has an outstanding housing loan with the Mutual Association, he/she must also provide a copy of the last Pension Fund statement as well as updated copies of the documents sent with the previous housing loan application (spouse's salaries, mortgage statement, monthly proven income, etc.).