Personal Loan vs. Bank Loan: Which Is Cheaper?
Anyone looking for a loan in Switzerland often faces the same question: should I go to a bank or apply for a personal loan through a crowdlending platform like Cashare? Both options have their pros and cons. In this article, we compare the key factors — so you can make the best decision for your situation.
What Is a Bank Loan?
A bank loan is a classic consumer credit issued directly by a bank to a private individual. The bank checks your creditworthiness, sets an interest rate, and pays the amount into your account. Repayment is made in monthly instalments over an agreed term.
In Switzerland, bank loans are regulated by the Consumer Credit Act (KKG). The statutory maximum effective annual interest rate is currently around 10% (set periodically by the Federal Council). In practice, banks offer rates close to this legal cap — depending on your creditworthiness and loan term.
What Is a Personal Loan via Crowdlending?
With crowdlending platforms like [Cashare](/investieren/privatinvestoren), the money does not come from a bank but from private and institutional investors. The platform handles the credit check, assesses the risk, and arranges the loan between borrowers and lenders.
The result: lower interest rates for borrowers and attractive returns for investors — without the cost-intensive infrastructure of a traditional bank.
Interest Rate Comparison: Cashare vs. Banks
| Criterion | Traditional Bank | Cashare Crowdlending | |---|---|---| | Effective rate | up to ~10% | 4.4% – 9.9% | | Minimum amount | CHF 1,000 | CHF 1,000 | | Maximum amount | CHF 80,000 | CHF 250,000 | | Term | 6 – 84 months | 1 – 60 months | | Early repayment | Often penalised | Free of charge |
At Cashare, interest rates range from 4.4% to 9.9% depending on the credit rating (A–F). This means: borrowers with good credit pay significantly less than at their house bank.
Speed and Process
At a traditional bank, loan approval can take several days to weeks. Documents often need to be submitted in person, and advisory meetings are mandatory.
At Cashare, the entire process is digital:
- Online application completed in minutes
- Credit check within 24 hours
- Loan listing on the platform — investors fund the project
- Disbursement after full funding
The average time from application to disbursement at Cashare is just a few business days.
No Early Repayment Penalty
A decisive advantage of Cashare over traditional banks: early repayments are free of charge. Anyone who receives an unexpected cash inflow — through an inheritance, a bonus, or the sale of an asset — can repay the loan at any time without additional costs.
Many banks, on the other hand, charge an early repayment fee that can amount to several hundred francs.
Flexibility and Terms
Cashare offers terms of 12 to 120 months — considerably more flexible than most banks. For larger projects such as home renovation or vehicle financing, a longer term can significantly reduce the monthly burden.
Security and Regulation
Cashare is not an unregulated space. The platform operates within the regulatory framework of FINMA and complies with all KKG requirements. The creditworthiness of each borrower is verified through the ZEK (Central Credit Information Office). Investors are protected by the credit rating system.
When Is a Bank Loan Better?
For very short-term small loans below CHF 5,000, banks may have competitive offers. Some cantonal banks also offer special terms for long-standing customers. Anyone who has known their bank for years and already uses various products there should also enquire.
Conclusion: Crowdlending Sets New Standards
Anyone looking to [apply for a personal loan](/kredit-beantragen/privatkredit) should seriously consider Cashare. The combination of lower interest rates, digital processes, flexible terms, and the option for free early repayment makes crowdlending the modern alternative to the classic bank loan.