What comprises the monthly credit rate?
The Monthly Credit Rate in Switzerland refers to the fixed amount a borrower pays each month to repay a loan, such as a car credit.
The instalment includes both the principal (the borrowed amount) and interest (the cost of financing). The monthly rate is influenced by factors such as the loan amount, interest rate, and repayment term.
A longer loan term results in lower monthly payments but higher overall interest costs, while a shorter term increases monthly payments but reduces total interest. Swiss lenders typically offer fixed monthly rates that help to ensure predictable budgeting. Some lenders, such as Gowago, will allow early repayments of the credit.