Personal loan rates and costs in Switzerland

The cost of a personal loan in Switzerland is shown as the effective annual rate, which by law includes the interest and the other costs of the credit. For consumer credits up to CHF 80’000, it may not exceed 10 % a year in 2026. What you pay in francs then depends on the rate you are offered, the amount and the term.

The effective annual rate, and what it includes

The effective annual rate (effektiver Jahreszins) expresses the total cost of the credit as a yearly percentage of the amount you borrow (KKG, Art. 6). The total cost means every cost you pay for the credit, the interest and the other costs (KKG, Art. 5). The lender works it out when you sign, with a formula set in the law, assuming the contract runs as agreed (KKG, Art. 33).

The law says which costs count (KKG, Art. 34 and 35):

Two points follow from this table. Optional insurance is not in the rate, so check what it adds. And late payment costs are not in the rate either, so ask what they are before you sign.

Some offers also show a nominal interest rate (Jahreszins). The effective annual rate is the one that includes all costs, and it is the one your contract must state (KKG, Art. 9). Use it to compare.

The legal maximum rate

The law caps the effective annual rate on consumer credits (KKG, Art. 14). The ordinance ties the cap to a market rate: the three-month compounded SARON plus 10 percentage points, rounded to a whole number. It may never be lower than 10 %. For overdrafts and cards with a credit option, the margin is 12 points and the floor is 12 % (VKKG, Art. 1).

The Federal Department of Justice and Police checks the cap at least once a year, at the end of August, and changes it for January of the next year if the formula requires it. The current figures, from 1 January 2026:

In 2025, the cap for cash loans was 11 %. The SARON reference rate fell to about 0.0054 % by the end of August 2025, so the cap went down by one point. According to the Federal Office of Justice, it is now at the lowest level the formula allows (notice of 31 October 2025).

A consumer credit contract above the maximum is void. You repay the amount you received in equal instalments over the agreed term, but owe no interest and no costs (KKG, Art. 15).

The cap applies to credits the KKG covers, from CHF 500 to CHF 80’000 (KKG, Art. 7). The guide to the maximum interest rate explains how it is set and what it means for you.

What sets your rate

A lender may publish a range of rates and set your own rate inside it after its check of your situation. The bottom of a range is not a promise: your offer shows the rate that applies to you. Compare offers on the rate you are actually offered.

At Swizeo, every loan has the same interest rate: 3 % a year, fixed for the whole term. The amount, the term and our check don’t change it. Our check decides whether we lend, not the rate. The effective annual rate is about 3.04 %. Your offer shows your total cost, and nothing is final until you sign.

How the rate and the term change the total

Three things set what you pay in francs: the rate, the amount and the term. Here is the same CHF 10’000 at Swizeo’s rate of 3 % a year, over two terms:

What the table shows:

• A longer term lowers the payment and raises the total. At 3 %, stretching the loan from 12 to 36 months cuts the monthly payment by CHF 556.13, and adds CHF 306.00 in interest.
• The amount scales the cost. Twice the amount at the same rate and term means about twice the interest.

The best term is usually the shortest one whose payment still fits your budget with room to spare. The loan calculator shows the figures for your own amount and term.

Fixed or variable

A fixed rate stays the same until the last payment, so your monthly payment does too. If a contract lets the lender change the rate or the costs, it must state the conditions under which that can happen (KKG, Art. 9). The effective annual rate in such a contract is worked out as if the starting rate never changed (KKG, Art. 33), so it can’t tell you what you will pay if the rate goes up.

Every Swizeo loan has a fixed interest rate of 3 % a year, an effective annual rate of about 3.04 %, and the same payment every month.

Other costs to check before you sign

• Fees. Application and processing fees are costs of the credit, so they belong in the effective annual rate. Account and transfer costs count only if you have no reasonable choice and they are unusually high (KKG, Art. 34). Ask for a list of every fee, so you know what each one is.
• Payment protection insurance. If it is optional, it is not in the effective annual rate (KKG, Art. 34). Check its monthly cost and what it covers before you accept it. Swizeo does not offer it.
• Late payments. Interest on a late payment may not be higher than the rate in your contract (KKG, Art. 18). Other costs of a late payment, such as reminder fees, are not in the effective annual rate (KKG, Art. 34).
• Paying back early. You have the right to repay early. The interest for the time you no longer use falls away, and the costs for that time are fairly reduced (KKG, Art. 17). At Swizeo you can repay all or part of your loan at any time, and pay interest only up to the day you repay.
• Credit brokers. You owe a broker nothing for arranging a consumer credit. What the lender pays a broker is part of the total cost and may not be billed to you separately (KKG, Art. 35).

Where to find the cost in your contract

For a credit the KKG covers, the contract must set out the cost in writing (KKG, Art. 9). Look for these points before you sign:

You get a copy of the contract, and you have 14 days to withdraw in writing after you receive it (KKG, Art. 16). Use that time to check the figures again.

How to keep the cost down

• Borrow only what you need. Every extra franc costs interest.
• Choose the shortest term whose payment fits your budget.
• Compare the effective annual rate and the total in francs for the same amount and term. The guide on how to compare loans has a checklist.
• Leave out extras you don’t need, and check what each one costs.
• Repay early when you can.

If an offer stresses speed above everything, read «instant» loans: what fast really means first.

Questions people ask

Which lender is the cheapest?

There is no single answer. A lender that publishes a range sets your rate inside it after its own check, so two people can get different rates from the same lender. At Swizeo every loan has the same rate, 3 % a year, an effective annual rate of about 3.04 %. Ask for offers for the same amount and term, and compare the effective annual rate and the total to repay.

Is 3 % within the legal limit?

Yes. From 1 January 2026, the maximum for cash loans is 10 % (Federal Office of Justice, notice of 31 October 2025). The cap applies to credits from CHF 500 to CHF 80’000. Swizeo’s interest rate is 3 % a year for any amount, an effective annual rate of about 3.04 %.

Does my rate change when the maximum changes?

A fixed rate in your contract stays as it is. A change to the legal maximum applies to the cap, not to the rate agreed in an existing fixed-rate contract. If your contract has a variable rate, its conditions for change are in the contract (KKG, Art. 9).

Next step

See the monthly payment, the total interest and the total to repay for your own amount and term in the loan calculator. It needs no name or ID.