Your credit capacity determines whether and how much credit you can get. Under the Swiss Federal Act on Consumer Credit (KKG, Art. 28–31), banks are required to carry out a credit capacity assessment before granting any loan. The calculation is based on your income, your expenses, and the so-called seizable quota.
The calculation step by step
Most Swiss banks use a standardized system (KREMO) for the credit capacity assessment. The calculation follows these steps:
Step 1: Determine net salary
Your gross salary is converted to a monthly basis. If you receive a 13th monthly salary, the annual salary is divided by 12 (×13/12). All deductions shown on your payslip are then subtracted. For those subject to withholding tax, the cantonal withholding tax schedule for the canton of residence applies, which is normally already visible, or already deducted, on the payslip.
Important: not everything counts as income. Fixed expense allowances are counted by some banks only at half value, or not at all, depending on the institution. For hourly wages, banks calculate with a maximum of 190 hours per month, even if you regularly work more. Child allowances are added separately only after the ×13/12 salary calculation, since they are paid out only 12 times a year.
Step 2: Deduct expenses
The following items are deducted from net salary:
- Rent or mortgage – including ancillary costs and amortization
- Basic amount (subsistence minimum) – depending on marital status and canton
- Child costs – per child, depending on age
- Taxes – cantonal withholding tax schedule
- Health insurance – system flat rate or actual premium
- Commute and meals away from home – depending on the institution
- Existing loans/leasing – according to ZEK/IKO
- Alimony – if applicable
Basic amounts by marital status
- Single: CHF 1'200 (slight cantonal variation)
- Married couple / registered partnership: CHF 1'700 (Canton SZ: CHF 2'000)
- Per child up to 12 years: CHF 400
- Per child over 12 years: CHF 600 (Canton SZ: CHF 400)
Step 3: Calculate the seizable quota
Net salary minus all expenses gives you the seizable quota. This is the amount left over each month after deducting all living costs and obligations.
Step 4: Maximum loan amount
The seizable quota is multiplied by 36 and the interest portion is deducted:
Seizable quota × 36 − interest portion = maximum loan amount
Example with a seizable quota of CHF 800 and 8.9% interest:
- CHF 800 × 36 = CHF 28'800
- Less the interest portion (approx. 12%): CHF 25'344 maximum loan
The 36-month rule applies regardless of the chosen term – even with an 84-month term, the loan must theoretically be repayable within 36 months.
What most people don't know: existing loans in the budget
Existing loans are not factored into the budget at their actual monthly installment, but at the outstanding balance divided by 36 months. This often results in a significantly higher burden than the real installment.
Example: CHF 48'000 remaining debt, 60 months remaining term, actual installment CHF 950. The budget, however, shows: 48,000 ÷ 36 = CHF 1'333. That's CHF 383 more per month than you actually have available in your budget.
For leasing, on the other hand, the actual monthly installment is counted.
This is the most common reason why debt consolidation makes sense: after payoff, the new loan is budgeted at the actual installment.
Partner income
For married couples or registered partnerships, the partner's income can be counted proportionally. The formula is based on the income ratio:
Partner share = partner income × (partner income ÷ total household income)
Example: you earn CHF 5'000, your partner CHF 3'000. Contribution: 3,000 × (3,000 ÷ 8,000) = CHF 1'125 in addition to the seizable quota.
For unmarried couples, a joint application is not possible. The partner can, however, help indirectly by demonstrably covering their share of rent and ancillary costs – in that case only your actual rent share is counted in the budget.