Fees

Repayment of the loan, payment of interest... We explain your payment plan to see the total cost.

 

A personal loan. What's that?

This is an interest-bearing loan with a warranty.

You have the option to use the money you don't have as you see fit, whether it's bill payments or personal projects.

The repayment of the money paid and the calculated interest, including all fees, is generally done between 12 and 120 months, which directly influences the total cost of your loan.

Of course, an analysis of your preliminary file is carried out in order to confirm your solvency and avoid a case of over-indebtedness.

It is also important to note that consumer credit is regulated by law.

Duration!

We were referring to the repayment period.

This duration obviously influences the amount of your monthly payments, which decreases.

However, the total cost of credit increases with the term.

So you'll pay less, in total, if you pay back in 12 months instead of 36 months.

What is a monthly payment?

This is the monthly amount you will pay to the lender in order to pay off your credit within the allotted term.

If you take out a loan that will have to be repaid in two years, you will have to pay 24 monthly payments.

These 24 monthly instalments will be shown on 24 lines in your amortization table.

What is depreciation?

Imagine that you are loaned CHF 12,000 interest-free and you have to pay that amount back within a year.

This means that you will have 12 monthly instalments of CHF 1,000.

The amortization, i.e. the monthly accounting of each payment made, will be CHF 1,000 per month.

You will therefore amortize the entire loan after twelve months to pay it off.

What about the depreciation table?

It is a simple document that allows you to view, month by month, the portion of amortization and the portion of interest used to pay off your loan as you go along.

An outstanding balance usually accompanies an updated depreciation schedule. This way, you will know how much remains to be repaid to the lender at all times.

The interest?

Of course, a loan is not free; An interest rate is applied.

Depending on the term, the amount borrowed and the contractual terms defined with the lender, interest will be calculated.

This interest covers all the costs related to your loan. It is also a form of remuneration and risk hedging relating to the lending of money over a fixed period. This also covers management costs.

In order to simplify the repayment process, your monthly payments are fixed.

You will therefore pay the same monthly instalment, each month, which includes both the amortization portion of the amount borrowed and the interest.

If you add up all your monthly payments and subtract the amount of the loan, you will know the real cost of your loan.

So I'm paying the same amount of interest every month?

No.

You will pay the same monthly instalment, but the interest and amortization costs vary from month to month.

At the beginning of your repayment period, you'll pay more interest and amortize less.

As payments are made, the interest portion will decrease and the depreciation portion will increase.

This, without the amount of your monthly payments varying and until the total repayment, including interest, of your loan.

What if I can't pay my monthly instalments?

It's common to deal with unforeseen financial events. In this case, it is important to discuss this with your credit partner as soon as possible. Together, you can explore solutions that are right for you. By being transparent and responsive, you will increase your chances of finding a balanced solution. This will prevent you from having problems with the ZEK.

Don't forget that there are rights and obligations that govern the contract signed with the lending bank.

What if, on the other hand, I am able to anticipate the full repayment?

The Consumer Credit Act states that you have the right to pay off your credit at any time.

A refund to your advantage can also be made in the event of an overpayment of interest proportions. Be careful, however, because, even if relatively low, cancellation fees may be charged by the lender. In some cases, there is none.

The best rate. The best service.

As you can see, calculating the cost of your loan and managing your amortization schedule is not complicated in itself.

The important thing is to assess your repayment capacity, control your budget and choose the right partner to build your credit request.

What for?

Taking out a loan is contractually binding. A risk of over-indebtedness must be avoided at all costs.

As soon as your situation is healthy, move forward with peace of mind to carry out your project.

The next step is to build your credit application. To maximize your chances of acceptance, surround yourself with good advisors, experts who are familiar with administrative requirements and know how to prepare and submit your file to lenders.

Finally, opt for a financing platform that has a wide range of banking partners; one that is well-established and adheres to an ethical charter for the benefit of its customers' interests.

A little revision.

1. An amortization is the monthly repayment of your loan.

True or False?

2. Your monthly payments are fixed.

True or False?

3. If you add up all your monthly payments and deduct the amount of your loan, you get the real cost of your loan.

True or False?

4. The portion of the interest paid each month is fixed.

True or False?

5. You'll pay less for your loan if you spread your repayment over a longer period.

True or False?

6. You have the right to repay early.

True or False?

7. Bonus question not provided for in the curriculum. You have to pay a fee to build your credit report.

True or False?

 

 Answers:

1. V
2. V
3. V
4. F
5. F
6. V
7. F (Opt for a financing platform that has a 0-fee policy, like Milenia!)

 

 

 

 

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In the jungle of credit cards, you might as well aim for simplicity and clarity; values dear to Milenia. That's good, get yours by making your request to your personal advisor. It's free!

We've talked about this before

Among our privileged partners, Cembra represents everything that constitutes a benevolent and qualitative collaboration.

As a flagship of financial services in Switzerland, this partner has been able to develop its activities over time by demonstrating a spirit of innovation in consumer credit, leasing, invoice purchases and credit card management.

Headquartered in Zürich with a history of more than a hundred years, we are proud to collaborate with Cembra in a spirit dedicated to a service offering aimed at meeting the precise needs of our customers.

For all these reasons, we decided to collaborate with Cembra and create the Certo credit card! One Mastercard® by Milenia.

Let's Talk Credit Card

Thanks to its own network of retail partners, Cembra customers benefit from special conditions with brands such as Coop or Migros.

As is often the case, you have the option to choose from different credit card options. In this case, depending on your financial means, you can opt for a Premium or Gold card.

Let's get to the heart of the matter

Your Certo! One Mastercard® by Milenia can be used worldwide.

Millions of businesses are linked so there's no risk of not being able to make your purchase no matter where you are, no matter the product.

Like any self-respecting credit card, you can pay in a physical store or online. This is normal.

Need to withdraw cash from an ATM? That's possible too.

In Switzerland and abroad? Of course.

Interest rate ?

You have the option of reimbursing all of your expenses indicated on the invoice or staggering the repayment over time, in which case the interest rate will be 11.95%.

Tech

Your payment card is contactless. You can pay amounts up to CHF 80 by holding your credit card close to the terminal to pay for the purchase, without entering your PIN.

The e-service is also appreciable. Access your history and personal data in just a few clicks.

Need emergency help? A hotline is available 24/7.

Okay, but it's not revolutionary...

That's why Cembra is launching Certo!

Do you have a Cumulus Mastercard? Make a free exchange to get the Certo! It's easy and free of charge.

What are the benefits ?

Do you shop at the Coop or Migros? Do you use SBB? Bingo! Using your Certo! You get discounts of up to 1% of your purchases.

Every three months, your accumulated savings are returned to you.

Other benefits through special actions and discounts applied in the context of short-term or long-term partnerships remain in force.

In addition, you can also access the "Cheapest Price Guaranteed" service. We'll tell you more about it later.

Terms & Conditions

Quality and responsibility are the other two values that are important to us. So we've taken care to go through the terms and conditions for you.

Admit it, you rarely do it, don't you ?

No problem! Here are our findings :

Is it still possible to spread my refunds upon receipt of an invoice ?

Yes.

What about transaction and withdrawal fees, especially abroad ?

Fees are applied either as a minimum flat rate (e.g. CHF 5 for a withdrawal abroad) or as a percentage per transaction. The rates applied are in line with the market prices.

And the lowest price guarantee ?

The short answer is yes, it's a service offered.

Be careful, however, it is important to take out an insurance policy covering this type of service and the associated conditions, which are not necessarily that simple.

Some products are excluded from the warranty. Power supply, for example, or vehicles.

A minimum price differential is applied, deadlines are imposed and it is necessary to fill out a file for each case encountered if applicable.

What about the percentage of discounts leading to savings ?

For once, nothing to complain about! You save between 0.33% and 1% on your purchases at the largest retailers in Switzerland. It's appreciable.

Milenia

At Milenia, we work every day to make your projects a reality. We are committed  to meeting your expectations and the challenges encountered on your life path.

Whether it's for a personal loan, real estate financing, job loss insurance, an advantageous credit card, cleaning your data or a business loan... We're here with you.

Finding the best offer, the formula best suited to your reality, the solution that truly suits your means... That's what drives us.

Whatever your personal situation, whether you want to finance a personal project or rather want to improve your cash flow, do not hesitate to visit our website.

You will be able to carry out simulations, learn about our various solutions or simply learn about the many articles on our blog.

Thousands of customers trust us every year. As part of the merger with credaris, Milenia is now the leading financing platform in Switzerland.

It is thanks to you and it is therefore quite naturally for you that we redouble our efforts to satisfy you.

Apply for your Certo card! One Mastercard® by Milenia

Speaking of advantageous credit cards and our desire to satisfy you, thanks to our partnership with Cembra, we can send you your Certo card!

All you have to do is contact your personal advisor.

Your credit card, made of recycled plastic, in Milenia's colors, will be offered to you !

No application fees, no annual membership fees to pay and the maintenance of all the benefits !

And if you'd like an extra card, it's free too !

When we told you that we were by your side…

 

 

 

 

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