Direct credit, with or without mortgage security (certificate of indebtedness, mortgage note), is the classic form of extending credit.
This type of credit is granted by the following categories of lenders:
- Private persons
- Insurers
- Pension funds
- State and its institutions that specialise in housing finance
Further Information
- Share of market volume
- approx. 10%, upward trend
- Lending must not be made on a commercial basis, otherwise the lender will need permission from his bank
- Risk for the borrower: failure by the lender to comply with the obligation to obtain a permit could result in a liquidation order by the Financial Market Supervisory Authority (FINMA)
- Intermediation Services
- Debt monitoring
- Credit administration
- Credit insurance
