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

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss Broker

Saxo Bank Special Offer

  • Special offer: Reimbursement of brokerage fees up to CHF 200 for 90 days

  • Licensed Swiss bank (FINMA)

  • Free expert research and trading signals

Funds

Allianz Fund Investments

  • Special offer with CHF 200 welcome bonus

  • No prior knowledge necessary: Advice from experts

  • One of the 10 largest asset managers worldwide

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

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

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

Special offers for Moneyland users

Moneyland Special Offers

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss Broker

Saxo Bank Special Offer

  • Special offer: Reimbursement of brokerage fees up to CHF 200 for 90 days

  • Licensed Swiss bank (FINMA)

  • Free expert research and trading signals

Funds

Allianz Fund Investments

  • Special offer with CHF 200 welcome bonus

  • No prior knowledge necessary: Advice from experts

  • One of the 10 largest asset managers worldwide

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

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

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

Deal of the Day
×
Free bank account

Yuh

No account fees

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