Furnishing a flat – how do I finance that?

Creating a more beautiful home is something that many people constantly strive for. It's no wonder that the magazine "Schöner wohnen" (Living more beautifully) has become a kind of beacon when it comes to home trends. A more beautiful home, who wouldn't want that?

However, reality restricts most people Because furnishing your home costs money. Taking savings from occupational or private pension plans, i.e. from the second or third pillar, as is common when buying a home, for example, is not permitted in Switzerland for the purchase of furniture and home accessories.

A personal loan can make sure that the new kitchen table, designer sofa, or box-spring bed you have your eye on is still within reach. In many cases, this financing solution is actually the best option. Compared to a partial credit card payment, for example, personal loan borrowers benefit from significantly lower interest rates. However, the option of financing a purchase by paying in installments, which many furniture stores and online stores offer, has disadvantages. This is because it usually involves quite a lot of administration and can quickly become confusing when buying several items. In addition, when paying in installments, the purchased goods belong to the retailer until the very last installment has been paid. With a loan, however, you become the owner as soon as you have purchased the item.

BANK-now offers personal loans from CHF 5,000 to CHF 250,000. The term can be freely chosen from 6 to 84 months. The effective annual interest rate depends on your creditworthiness and ranges from 6.9 % to 11.9 %. For homeowners in Switzerland, it is only 5.9  to 11.5 %.

The budget will indicate whether or not you can afford a personal loan for new home furnishings. Calculate your budget with our quick finance check. Planning accordingly helps to provide an overview of the financial situation. Within the scope of the Swiss Consumer Credit Act (CCA), BANK-now duly conducts the creditworthiness check and prepares an individual budget calculation together with you. We take into consideration general living costs, housing, taxes, household expenses, health insurance premiums, transport, etc. and compare the outgoings to your monthly income.

A small tip: Only use a loan to finance long-lasting furnishings with minimal depreciation. The general rule of thumb is that the term of the loan should be shorter than the life of the product if possible.