Disability, accidents, illnesses and involuntary unemployment are not uncommon events in a person’s life.
At the moment you are unemployed, you easily lose between 20% and 30% of your last salary, which can lead to an income gap and can disrupt your monthly budget and standard of living, especially if you have a fee like a personal loan.
What to do in such a situation?
When we add funds, you are not protected from a possible loss of income that could prevent you from making your monthly payments.
Some banks expect these unexpected events by offering unemployment insurance (PPI) that is included directly in your loan agreement. The PPI makes it possible to insure the monthly payment in the event of damage, so you don’t have to worry.
This insurance can be valid for a maximum of two 12 months during the contract period, but may not be used for 24 consecutive months.
Can I top up while I’m unemployed?
Banks and financial institutions in Switzerland cannot offer private loans if you are unemployed.
In fact, banks rely on a budget calculation based on the amount of salary or income from a pension. You need a certain level of certainty regarding the customer’s creditworthiness and repayment of the monthly payments, which unemployment cannot offer.
Although you will continue to receive regular and more or less stable money even if you are unemployed, your financial situation is not sufficient for the banks, and the banks are strictly prohibited from giving unemployed people, with the exception of pensioners (AVS / AI), one To grant credit. In fact, unemployment is considered insurance, and in Switzerland it is not possible to obtain credit through insurance, be it maternity, accident or unemployment insurance.
What happens if I become unemployed during the loan?
If you are unemployed and have no unemployment insurance while repaying your loan, the situation becomes more complicated. At the time of your vacation, whatever it may be, it is too late to take out insurance that will allow you to keep your budget and ensure your monthly payment.
In these cases, we recommend that you contact the person concerned who can offer you a reasonable refund solution before the situation worsens and you accumulate the unpaid monthly payments.
However, it is good to know that the banks calculate the budget responsibly and always leave a certain margin of guarantee to prevent the customer from falling into debt in the event of unemployment.
How do I insure my credit?
If you become unemployed or unable to take out insurance, it is too late. There are also certain deadlines to be met.
For unemployment insurance there is a waiting period of 3 months after the contract is signed.
Afterwards and in the event of disability, you will immediately receive the amount of the benefit for which you have registered.
In the event of involuntary unemployment, the 3-month waiting period is followed by a 3-month waiting period. Therefore, it is important to do this in advance to avoid the unexpected as much as possible.
Our services in your favor range from USD 500 to USD 2,000.
This insurance covers you if you are unable to work or if you are unemployed through no fault of your own, depending on which benefit you have chosen beforehand and which you can claim at your own discretion.
Applying for an insured loan in the event of unemployment