In Bern, lending or borrowing between individuals is free and governed by the Code of Obligations. All you need is a clear IOU in Swiss francs, a traceable transfer and a correct entry in the Bern cantonal tax return.
A capital of administrations and civil servants
Bern hosts the Federal Palace, many federal offices, FINMA and the University of Bern. These stable public jobs reassure family lenders, but they do not rule out one-off needs such as a rental deposit, a car, training or tax arrears.
A bilingual canton, from Bern to Biel
The canton of Bern is officially bilingual, with the Bernese Jura and Biel on the French-speaking side. A loan between someone living in Biel and a relative in the city of Bern can therefore be written in French, German or both.
FINMA, a neighbour but not a mediator
Based in Bern, FINMA, the Swiss financial market supervisor, oversees banks, insurers and fintech licence holders, but it does not settle disputes between individuals. It does publish a warning list of suspicious entities, useful for ruling out a so-called institutional lender.
When does a private loan become a regulated activity?
An individual who lends savings to a relative needs no authorisation. Someone granting consumer credit on a professional basis falls under the LCC, the consumer credit act, and needs cantonal authorisation. Our page on peer-to-peer lending in Switzerland summarises this framework.
A well-drafted Bern IOU
A signed document stating the amount, the handover date, the agreed rate and the schedule is sufficient in Swiss law. Our peer-to-peer loan contract template lists the useful clauses, to adapt with a Bern notary if security is planned.
Interest and the federal 10% cap
For cash loans from professional lenders, the Federal Office of Justice gives a maximum rate of 10% in 2026. Between individuals, interest is owed only if agreed, and an excessive rate may fall under the criminal ban on usury.
How Bern taxes a private loan
The Bern cantonal tax administration expects the lender to list the claim in their wealth and the interest in their income, while the borrower declares the debt and interest paid. See also our file on declaring a peer-to-peer loan for tax.
Recovery through the debt enforcement office
An unpaid creditor files a debt enforcement request with the office for the debtor's place of residence, for example the Bern-Mittelland district office. A payment order is served, and if the debtor objects, the IOU opens the way to provisional removal of the objection.
Bern students and young workers
University of Bern students and apprentices sometimes borrow from their parents for a first home or a computer. These loans are worth putting in writing, even when modest, to avoid family tension and clarify what happens to the debt in a future inheritance.
Fake lenders and impersonated authorities
Some fraudsters send documents bearing a federal authority's letterhead to reassure victims, then demand insurance or release fees. No Swiss authority ever collects money to release a private loan, and this sign alone is enough to cut off contact.
Debt advice and legal help in Bern
Bern residents in difficulty can turn to a debt advice service recognised by Dettes Conseils Suisse. The Stiftung für Konsumentenschutz, based in Bern, provides information on credit, and a lawyer remains advisable for a dispute over a large sum.
Complaints to the Bern cantonal police
In a fraud case, the victim files a complaint with the Bern cantonal police, bringing transfer statements and conversations. A report to the Federal Office for Cybersecurity helps get the fraudulent sites and profiles used by fake lenders shut down.
Recommended procedure for a private loan in Bern
- Check the FINMA warning list if the lender presents itself as a company, a bank or a fund.
- Put in writing the amount in francs, the handover date, any interest and each repayment date.
- Sign two copies of the IOU, one for each party, in French or German.
- Make the payment by transfer from a Swiss account and keep the matching debit notice.
- Enter the claim and the interest in the Bern tax return for the relevant year.
- Send a written reminder if payments are late, then go to the debt enforcement office if the borrower stays silent.
Costs to expect for a peer-to-peer loan in Bern
| Element | Indicative cost (CHF) | Good to know |
|---|---|---|
| Rate between individuals | Freely set | Interest owed only if agreed |
| Cash loan subject to the LCC | Up to 10% a year (indicative, 2026) | Mandatory creditworthiness check |
| Review by a Bern lawyer | Fees freely set | Request a quote beforehand |
| Mortgage security | Notary and land register fees | Canton of Bern tariffs |
| Fee scam | Amount paid is lost | Complaint to the cantonal police |
Papers to prepare in Bern
- Swiss identity card or residence permit
- Latest Bern tax assessment
- Payslips or a certificate from the public employer
- Recent debt enforcement register extract
- IOU signed in two copies
- Debit notice for the initial transfer
- Dated repayment plan
Common mistakes by Bern borrowers and lenders
- Trusting a letter bearing the FINMA or federal office logo that demands fees before a loan is paid out.
- Lending to a relative without anything in writing, then finding at an inheritance that heirs dispute the debt entirely.
- Leaving the claim out of the Bern tax return and exposing yourself to back-tax proceedings.
- Sending a passport copy and bank statements to a stranger, at the risk of identity theft.
- Accepting an exorbitant rate from a private lender exploiting a financial emergency or ongoing debt enforcement.
Peer-to-peer loans in Bern: practical answers
Can FINMA step into a loan dispute between Bern residents?
No. FINMA supervises authorised financial institutions and publishes warnings, but it does not arbitrate a disagreement between two individuals. Such disputes go through the debt enforcement office, the conciliation authority and then the competent civil court.
Can a federal civil servant lend money to a colleague?
Nothing in principle forbids a private loan between colleagues, but the employer's internal rules on conflicts of interest may apply, especially where there is a reporting line. It is wise to check your service regulations and put the loan in writing.
How do you prove a loan made without a contract in Bern?
Transfers with a clear reference, messages in which the borrower acknowledges the debt and witness statements can help. Without them, the money may be treated as a gift. Getting an IOU signed, even afterwards, greatly strengthens the lender's position.
Is interest on a family loan taxable in Bern?
Yes, interest received is in principle taxable income for the lender, and the claim counts towards their wealth. The borrower can deduct interest paid within certain limits. The Bern cantonal tax administration confirms the treatment for each situation.