Taking out a personal loan in Switzerland

A personal loan in Switzerland is a consumer credit: a lender pays you a fixed sum, and you pay it back in equal monthly instalments with interest. For loans from CHF 500 to CHF 80’000, the Federal Act on Consumer Credit (Konsumkreditgesetz, KKG) sets the rules every lender must follow. It caps the rate, which is 10 % a year for cash loans in 2026, makes the lender check that you can afford the payments, and gives you 14 days to withdraw and the right to repay early.

How a personal loan works

You borrow a set amount for a set term, for example CHF 10’000 over 12 months. Each month you pay the same instalment. It covers part of the amount and the interest. After the last instalment, the loan is paid off.

You will meet several words for the same thing. Privatkredit means personal loan, Barkredit means cash loan, and Konsumkredit means consumer credit. The law uses consumer credit, and it covers more than cash loans. Credit and customer cards and overdrafts with a credit option (the option to pay a balance in instalments) count as consumer credit too, and so do some leasing contracts for private use (KKG, Art. 1).

A personal loan has no security behind it. You don’t pledge your home or your savings. Credits secured by a mortgage, or covered by usual bank collateral you have deposited or by enough assets you hold with the lender, fall outside the consumer credit rules (KKG, Art. 7).

Which loans the Consumer Credit Act covers

The KKG covers consumer credits from CHF 500 to CHF 80’000. Among the credits it does not apply to (KKG, Art. 7):

• credits under CHF 500 or over CHF 80’000
• credits secured, directly or indirectly, by a mortgage on property
• credits covered by usual bank collateral you have deposited, or by enough assets you hold with the lender
• credits with no interest and no fees
• credits you must repay within three months

The Federal Council can adjust the two amounts. Inside that scope, the law says a contract may not depart from its rules to your disadvantage (KKG, Art. 37).

Above CHF 80’000, the KKG does not apply. If you borrow more, ask the lender which rules cover your contract before you sign. Swizeo lends up to CHF 1’000’000.

What a loan costs

The figure to look at is the effective annual rate (effektiver Jahreszins). It expresses all the costs of the credit, the interest and any other costs, as a yearly percentage of the amount you borrow (KKG, Art. 5 and 6). That makes it the best single figure for comparing offers for the same amount and term.

The law caps it. The maximum rate (Höchstzinssatz) follows a market rate: the three-month compounded SARON plus 10 percentage points, rounded to a whole number, and never below 10 % (VKKG, Art. 1). The Federal Department of Justice and Police reviews it at least once a year. From 1 January 2026, the maximum is 10 % for cash loans and 12 % for overdrafts and cards with a credit option (Federal Office of Justice, notice of 31 October 2025; VKKG, Art. 1).

A consumer credit contract above the maximum is void. You repay the amount you received in equal instalments over the agreed term, and you owe no interest and no costs (KKG, Art. 14 and 15).

What that means in francs: at Swizeo, CHF 10’000 over 12 months costs CHF 846.94 a month, at an interest rate of 3 % a year, an effective annual rate of 3.04 %. The interest comes to CHF 163.25 in total.

A longer term lowers the monthly payment and raises the total you pay. The guide to rates and costs shows how each part of the price works, and the guide to the maximum interest rate explains the cap in detail.

The steps, from first idea to last payment

1. Work out what you can afford. List your income and your fixed costs: rent, health insurance, taxes, other loans and leasing. What is left each month sets a payment you can carry. The guide how much can I borrow walks through it.
2. Compare offers. Put the same amount and term side by side and compare the effective annual rate and the total cost in francs. See how to compare loans.
3. Apply. You give the lender your details and documents: an ID or passport, your residence permit if you have one, and proof of income if the lender asks for it. The steps are in how to apply.
4. The credit check. The lender checks your records and your budget. More on this below.
5. The offer and the contract. If the answer is yes, you get a written contract and a copy of it.
6. The withdrawal period. You have 14 days to change your mind.
7. Payout. The lender pays the money into your account.
8. Monthly payments. You pay the same instalment each month until the loan is repaid. You can repay early at any time.

What the lender checks before saying yes

Before signing a consumer credit contract, a lender that lends as a business must check that you can afford it (KKG, Art. 27a). The law states the aim plainly: to avoid over-indebtedness (KKG, Art. 22).

The test is set in the law. You must be able to repay the credit without touching the part of your income that can’t be seized in debt collection, your Existenzminimum (minimum subsistence level). The lender works this out with the guidelines of your canton of residence. It must count at least your actual rent, your taxes according to the withholding tax table, and the commitments already recorded at the IKO. And it must assume that the loan is repaid within 36 months, even if your contract runs longer (KKG, Art. 28).

That last rule matters for long terms. A loan over 84 months has a lower monthly payment, but the check looks at what you could repay over 36.

To check what you tell it, the lender can ask for an extract from the debt collection register and a salary statement. If you are not employed, it can ask for other documents that show your income (KKG, Art. 31).

Lenders also look at your credit records. Switzerland has no single credit score. The main records are these:

The guide to what lenders check explains each record, and ordering a debt collection extract shows how to get yours.

A lender that seriously breaks the rules on the credit check loses the whole amount it lent, with interest and costs. For smaller breaches, it loses the interest and costs (KKG, Art. 32). So be careful with offers of a loan «without a credit check». The guide on loans without a credit check explains what is true.

Your rights once you have signed

• A written contract. You get a copy. It must state the net amount, the effective annual rate, the conditions under which the rate or costs can change, the repayment plan and, where possible, the total of all payments. It must also state your right to repay early, your right to withdraw, any security asked for, and the part of your income the credit check was based on (KKG, Art. 9).
• 14 days to withdraw. You can withdraw in writing within 14 days. The period starts when you receive your copy of the contract, and handing your letter to the post on the last day is enough (KKG, Art. 16). If the money was already paid out, you repay the amount in equal instalments over the agreed term, without interest or costs (KKG, Art. 15 and 16).
• Early repayment. You can repay early at any time. You then don’t pay the interest for the time you no longer use, and the costs for that time are fairly reduced (KKG, Art. 17).
• Limits if you pay late. Interest on late payments may not be higher than the rate in your contract. If unpaid instalments reach 10 % of the net amount, the lender may end the contract (KKG, Art. 18), and it must report the arrears to the IKO (KKG, Art. 25).
• Nothing to pay a broker. You owe a credit broker nothing. What a lender pays a broker is part of the total cost and may not be billed to you separately (KKG, Art. 35).

Before you borrow

A loan costs money, and you always repay more than you borrow. If bills are already hard to pay, a new loan can make it harder.

Free help exists. Schuldenberatung Schweiz, the umbrella organisation of the non-profit debt advice offices, lists the offices by canton and runs a free hotline on 0800 708 708 (schulden.ch). The guide to debt help in Switzerland starts there.

Be wary of anyone who asks for a fee before a loan is paid out. See spotting loan scams.

How a Swizeo loan works

Swizeo lends its own funds and decides on your loan itself. Our name is on your contract.

Our requirements guide sets out what lenders ask for, and the personal loan page shows our own rules.

Questions people ask

Can foreigners get a loan in Switzerland?

The KKG sets no rule on nationality or residence permits. Each lender decides which permits it accepts and for how long you must have held one. The guide to loans with a residence permit explains the permits and what lenders look at.

How long does it take to get the money?

The KKG sets no time for a decision or a payout. It depends on the lender and on how quickly you send what it needs. The guide to «instant» loans explains what fast really means.

What happens if I can’t pay?

Talk to the lender before the due date. If unpaid instalments reach 10 % of the net amount, the lender may end the contract and must report the arrears to the IKO (KKG, Art. 18 and 25). A debt advice office can help you look at every option.

Next step

See the monthly payment and the total cost for your amount and term in the loan calculator. It needs no name or ID.