Consumer Loan Agreement Template for Switzerland

The Consumer Loan Agreement is a fundamental document used in Swiss consumer finance transactions when a financial institution extends credit to individual borrowers for personal, family, or household purposes. This agreement must strictly comply with the Federal Consumer Credit Act (KKG/LCC) and related regulations, which mandate specific content requirements, interest rate caps, and consumer protection measures. The document includes mandatory creditworthiness assessments, clear cost structures, and cooling-off period rights. It is designed for use in Switzerland and must reflect cantonal variations where applicable. The agreement typically covers loan amounts between CHF 500 and CHF 80,000, though different rules may apply for larger amounts or specific loan types.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Brief context of the loan request and relationship between parties

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

4. Loan Amount and Purpose: Specification of the credit amount and intended use of the loan

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

6. Term and Repayment: Duration of the loan and repayment schedule including installment amounts

7. Disbursement: Conditions and process for disbursement of the loan amount

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

9. Default and Consequences: Definition of default events and their consequences

10. Borrower's Representations: Borrower's confirmations regarding their financial situation and provided information

11. Termination Rights: Conditions under which either party may terminate the agreement

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

13. Notices: Communication methods and contact details for official notices

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