When a personal loan makes sense

eny Finance itself offers personal loans. That’s why we clearly label product information and also show situations in which a loan is not the right fit. A loan that leads to over-indebtedness may not be granted.

The question before all others: is the instalment affordable in the long run?

A loan does not change how much money you have. It shifts points in time: you receive the amount today and repay more over the term than you received. That is sensible exactly when the benefit of the earlier point in time is greater than the interest cost.

So check your budget first, not the offer. Compare your net income against your fixed expenses — rent, health insurance, taxes or withholding tax, transport, insurance, maintenance payments, existing instalments. What remains afterwards is your margin, and the new instalment must not exhaust it.

Free budget templates and benchmarks are available from Budgetberatung Schweiz, an independent non-profit organisation with no connection to eny.

When a personal loan can make sense

Situation	Why a loan can be suitable here	Condition
A necessary replacement or repair that cannot wait — for example the car for the commute or a broken household appliance	Doing without costs more than the interest, because income or daily life is directly affected	Costs known, instalment affordable, term no longer than the useful life
Medical treatment that becomes more expensive or worse for your health if postponed	Plannable one-off cost, clear benefit	Cost estimate available; clarify direct instalment payment with the practice beforehand
Consolidating more expensive commitments	Total cost can fall if the new annual percentage rate is lower	Only if the total cost falls, not just the monthly instalment; do not extend the term
Further education with an expected return	Investment in future income	Completion and benefit realistic, instalment affordable even during training
A purchase that would otherwise run via a more expensive instalment plan	A consumer loan is often cheaper than a card instalment plan	Compare the annual percentage rates of both options

Common to all cases: the expense is concrete, the amount is known and repayment is planned from current income.

When we advise against a personal loan

This list is meant seriously. In the following situations, a loan is, in our view, the wrong step:

• To finance current fixed costs. Anyone who pays rent, health insurance or taxes with a loan has a structural gap in their budget. A loan enlarges this gap, because an instalment is added.
• To cover payment arrears or reminders. This shifts the problem and increases the monthly burden. A payment arrangement with creditors or a specialist office helps here.
• When debt enforcement proceedings are under way or over-indebtedness exists. Then ability to repay is lacking, and granting a loan would be unlawful. The right path leads through debt counselling.
• For consumption without lasting value and without a repayment plan — for example holidays, parties or gifts. The industry convention on aggressive advertising specifically prohibits advertising for short-term, costly leisure activities or parties.
• For speculation. Securities, cryptocurrencies or bets with borrowed money: whoever has to repay the loan alone bears the risk of loss.
• When your income is uncertain — a notice of termination announced, probationary period, fixed-term contract, a planned move into self-employment.
• When the instalment only becomes affordable with the longest possible term. Then there is no buffer, and the total cost is at its highest.
• When you are taking out the loan for another person. You have to repay it — legally and in fact.
• When you feel under pressure. Time pressure is never a good argument in loan decisions. Aggressive advertising for consumer loans is prohibited in Switzerland (Art. 36a KKG).

Alternatives you should check first

Alternative	When it fits better
Use savings	If reserves are available and the emergency fund remains intact. Interest is avoided entirely.
Postpone the expense and save	If the expense is not urgent. Three to six months of saving often replaces a small loan.
Instalment payment directly with the provider	Practices, garages, tradespeople and furniture stores often grant interest-free instalment payment. Always ask first.
Payment arrangement with authorities	Tax offices and health insurers often approve instalment plans. This is cheaper than any loan.
Leasing instead of a loan — or vice versa	For a vehicle, the comparison is worth it. Differences are set out under Car loan or leasing.
Budget counselling	If it is unclear where the money is going. Independent and usually free: Budgetberatung Schweiz.
Debt counselling	If several commitments weigh on you at the same time or debt enforcement proceedings are under way: Schuldenberatung Schweiz.

Self-test: five questions before deciding

Answer these questions for yourself before applying anywhere.

1. What happens if I don’t make this expense? If the answer is “nothing serious”, you don’t need a loan.
2. Could I still pay the instalment if a month’s salary fell away or a larger bill arrived? If not, the instalment is too high.
3. Do I know the total cost — not just the monthly instalment? Only the annual percentage rate and the sum of all instalments tell you what the loan costs.
4. Is there still enough left after the instalment for health insurance, taxes and reserves? The instalment must not use up your margin completely.
5. Would the expense be possible from your own funds after a saving period? Then waiting is usually cheaper.

Five clear answers and no doubt on questions 2 and 4: then a loan is a reasonable option. With two or more uncertain answers: not now.

This self-test is guidance and replaces neither advice nor the assessment of an application. For KKG agreements, the assessment of ability to repay is required by law. The self-test is not a preliminary decision.

If you are already over-indebted

If your income no longer covers your current commitments, a further loan is not the solution — and legally not possible, because granting a loan is prohibited if it leads to over-indebtedness (Art. 3 UWG).

Contact a non-profit specialist debt counselling office. These offices are independent, work according to common guidelines and have no sales interest. The directory by canton of residence is maintained by Schuldenberatung Schweiz.

You are not alone in this: according to the 2024 statistics of Schuldenberatung Schweiz, 6,242 households sought support from a specialist office for the first time that year.

What actually helps in this situation: draw up an overview of all claims, check payment arrangements, set priorities (housing, health insurance, energy first) and take on no new commitments.

What a loan costs if you decide to take one

Compare the annual percentage rate, which covers all loan costs, as well as the monthly instalment, term and total amount. Choose the shortest term whose instalment you can safely afford. For KKG agreements, early repayment is possible at any time; the withdrawal period is 14 days from receipt of the copy of the agreement.

If you want to calculate with your own figures: loan calculator with instalment and total cost. To check switching an existing loan: Debt consolidation. What is examined in the assessment is set out in our guide on Credit assessment.

If you want to look at the specific terms: Personal loan from eny Credit.

Note: the lender is eny Finance AG, based in Zürich. Granting a loan is prohibited if it leads to over-indebtedness of the consumer.

Publisher: eny Finance AG, Baslerstrasse 60, 8048 Zürich As of: 6 August 2026 · Next review: January 2027