Discretionary Income (Loans)

Discretionary income, with regards to loans, is the portion of your income which is available for loan repayments. Discretionary income is a key factor in determining creditworthiness. You can only get a loan in Switzerland if your monthly loan repayments would not exceed your discretionary income.

In most cases, discretionary income is calculated by subtracting the minimum income you would need to survive on (the poverty guideline) from your total net income. However, there are certain types of income which cannot be seized to repay debts (OASI pensions, IV pensions, and welfare benefits, for example). Incomes from these sources cannot be included in your net income for discretionary income calculations. You can find more information about in the moneyland.ch guide to Swiss debt capacity requirements.

Example: If you had seizable net income of 4000 francs per month, and your minimum income requirements as per the poverty guideline are 3000 francs per month, your discretionary income would be 1000 francs per month. That means you could get a loan as long as the required repayments are not more than 1000 francs per month. That would be the case, for example, if you got a 31,186-franc loan with a 10 percent annual interest rate and a 36-month loan term.

More on this topic:
Compare Swiss personal loans now
Loan calculator
How creditworthiness is determined

Special offers for Moneyland users

Moneyland Special Offers

Swiss Trading Platform

Cornèrtrader Special Offer

  • Special offer: particularly favorable conditions for Moneyland users

  • No custody account fees for shares

  • Swiss online bank with FINMA license

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Amex promotion until April 6

Amex Platinum Card

  • 50% off the annual fee in the first year

  • Extra bonus: 75,000 instead of 45,000 Membership Rewards points

  • Further benefits: 10% discount on purchases in Gübelin boutiques & Up to CHF 160 Dining credit per year in over 600 GaultMillau restaurants

Swiss digital bank

Alpian

  • CHF 75 welcome bonus with referral code LAND25.

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Special offers for Moneyland users

Moneyland Special Offers

Swiss Trading Platform

Cornèrtrader Special Offer

  • Special offer: particularly favorable conditions for Moneyland users

  • No custody account fees for shares

  • Swiss online bank with FINMA license

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Amex promotion until April 6

Amex Platinum Card

  • 50% off the annual fee in the first year

  • Extra bonus: 75,000 instead of 45,000 Membership Rewards points

  • Further benefits: 10% discount on purchases in Gübelin boutiques & Up to CHF 160 Dining credit per year in over 600 GaultMillau restaurants

Swiss digital bank

Alpian

  • CHF 75 welcome bonus with referral code LAND25.

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Deal of the Day
×
Swiss Trading Platform

Cornèrtrader Special Offer

Special offer: particularly favorable conditions for Moneyland users

Expert Felix Oeschger
Felix Oeschger is an analyst and expert at moneyland.ch. He is responsible for several core topics.