Consumer Credit Agreement Template for Switzerland

The Consumer Credit Agreement is a fundamental document used in Swiss financial services for establishing legally binding credit arrangements between financial institutions and individual consumers. It is specifically designed to comply with the Swiss Federal Consumer Credit Act (KKG/LCC) and related regulations, which provide strict consumer protection measures and transparency requirements. This document is essential when providing personal loans, credit cards, or other consumer credit products in Switzerland, typically for amounts between CHF 500 and CHF 80,000. The agreement must include mandatory information such as the effective annual interest rate, withdrawal rights, and detailed repayment schedules. It is particularly important in ensuring regulatory compliance while protecting both the lender's interests and consumer rights under Swiss law.

1. Parties: Identification of the credit provider and the consumer, including full legal names, addresses, and relevant registration details

2. Background: Brief context of the credit agreement and its purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Credit Amount and Purpose: Specification of the total credit amount and its intended use

5. Interest Rate and Charges: Detailed breakdown of the annual interest rate, effective annual rate (APR), and all associated costs

6. Term and Repayment: Duration of the credit agreement and detailed repayment schedule

7. Payment Terms: Methods of payment, payment dates, and consequences of late or missed payments

8. Right of Withdrawal: Consumer's right to withdraw from the agreement within 14 days as per Swiss law

9. Early Repayment: Terms and conditions for early repayment and any associated fee reduction

10. Default and Consequences: Circumstances constituting default and resulting consequences

11. Data Protection: Handling of personal data and credit information

12. Notices: Communication methods and contact details for notices between parties

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction