In Switzerland, a loan between private individuals falls under articles 312 onwards of the Code of Obligations, while credit from professional lenders follows the LCC, whose maximum rate is 10 % in 2026; a signed written agreement remains essential.
The loan for consumption under articles 312 to 318 CO
The Code of Obligations (CO) treats a money loan as a loan for consumption: the lender transfers ownership of a sum, which the borrower will return in the same quantity. No form is required, but without writing the loan is hard to prove.
Interest: nothing is owed in civil matters without agreement
Article 313 CO provides that, in civil matters, interest between private individuals is owed only if it was agreed. A family loan is therefore interest-free by default. To set a rate or schedule, draw up a written and dated loan contract.
No due date: six weeks to repay
When the contract sets no date, article 318 CO gives the borrower six weeks from the first demand to return the sum. It is better to agree a precise schedule in Swiss francs, with the payment account and the consequences of late payment.
LCC: 10 % in 2026 for cash loans
The LCC, the Swiss Consumer Credit Act, covers professional lenders for amounts from 500 to 80 000 francs. According to the Federal Office of Justice, the maximum rate has been 10 % for cash loans and 12 % for overdrafts since January 2026.
Usury: article 157 of the Criminal Code
Outside the LCC, no fixed federal ceiling applies to an occasional private loan. Article 157 of the Criminal Code nevertheless punishes usury, meaning the exploitation of another person's hardship or inexperience to gain disproportionate advantages. A lawyer can assess a disputed rate.
Crowdlending platforms: Cashare, Lend, Swisspeers
Swiss crowdlending relies on platforms such as Cashare and Lend for loans to individuals, or Swisspeers for SMEs. Lend states that it holds an authorisation under the LCC. Before committing, check each intermediary's current status and fees.
FINMA, fintech licence and public deposits
FINMA, the Swiss financial regulator, explains that accepting funds from more than 20 people may require authorisation, with the fintech licence covering deposits up to 100 million francs. A so-called lender raising money from the public without any status deserves immediate suspicion.
IKO and ZEK: the Swiss credit registers
Lenders subject to the LCC consult and feed the IKO, the information centre required by law, and the ZEK, a private credit information bureau. A loan between friends does not appear there, which draws already heavily indebted borrowers towards private lending.
Acknowledgement of debt and provisional removal of objection
If payments stop, the lender files a debt collection request with the debt enforcement office at the debtor's home. A signed acknowledgement of debt is a title for provisional removal of objection under article 82 LP, speeding up a contested payment order.
Tax: interest is taxable, the claim counts as wealth
The lender declares the claim in their wealth and the interest received in their income; the borrower can in principle deduct the debt and interest paid, within cantonal limits. Detailed rules are on our page about tax on private loans.
Fake lenders: the advance-fee scam in French-speaking Switzerland
Scammers in French-speaking Switzerland post adverts for quick loans between individuals, then demand insurance, notary or transfer fees before any payment. Some misuse FINMA's name; check its warning list before replying to a stranger.
Reporting fraud: police and the NCSC
A victim files a complaint with the cantonal police and can report fraudulent sites to the Federal Office for Cybersecurity. Our guide to reporting a private loan scam lists the evidence to keep: screenshots, transfer references and complete exchanges.
Setting up a private loan in Switzerland, step by step
- Check the lender's identity and, if they claim to be a professional, their cantonal LCC authorisation and absence from the FINMA warning list.
- Draw up an acknowledgement of debt or loan contract stating the amount in CHF, the term, agreed interest and schedule, signed by both parties.
- Pay the funds by bank or postal transfer to an account in the borrower's name, never in cash or cryptocurrency.
- Set up standing orders for repayments and keep the statements as proof of each payment.
- Enter the claim, the debt and the interest in the cantonal tax returns of lender and borrower.
- If payments stop, send a written formal notice and then file a debt collection request with the competent office.
Costs of a peer-to-peer loan in Switzerland
| Item | Indicative amount in CHF | Note |
|---|---|---|
| Interest between individuals | Free, to be agreed | Owed only if agreed (art. 313 CO); usury is punishable |
| Professional credit under the LCC | Max. 10 % a year (indicative, 2026) | 12 % for overdrafts and credit cards |
| Crowdlending platform fees | Vary by platform | Read the terms before signing |
| Mortgage note (cédule hypothécaire) | Cantonal fees | Notarised deed and land register entry |
| Tax on interest | Cantonal and federal scales | Interest added to the lender's taxable income |
| Fees demanded by a fake lender | Total loss | No legitimate lender asks for payment upfront |
Documents to gather for a private loan in Switzerland
- Identity document or residence permit
- Last three payslips
- Recent extract from the debt enforcement register
- Signed contract or acknowledgement of debt
- IBAN of the account for payment and repayment
- Proof of the initial transfer
- Dated repayment schedule
Common mistakes and scam signals in Switzerland
- Paying insurance, application or so-called notary fees before receiving the funds: this is the classic loan scam pattern.
- Trusting a lender met on Facebook or WhatsApp who promises credit without consulting the IKO or asking for a debt enforcement extract.
- Handing over cash without a receipt, which later makes it impossible to prove the loan before the debt enforcement office or a court.
- Paying fees in bitcoin, gift cards or by money transfer abroad, payment methods that are practically impossible to recover.
- Forgetting to declare the claim and the interest, which exposes you to a tax reassessment and a fine for tax evasion.
Private loans in Switzerland: your questions
Must a loan between friends in Switzerland be declared?
No official registration is required when it is agreed. However, the claim forms part of the lender's taxable wealth and the interest part of their income, while the borrower reports the debt. Your canton's tax office confirms the exact treatment for your situation.
What rate can you charge a relative in Switzerland?
The LCC and its 10 % ceiling apply to professional lenders. Between individuals the rate is free, but article 157 of the Criminal Code punishes usury when a disproportionate advantage is drawn from the borrower's distress. Stay reasonable and record the rate in writing.
Can a Swiss platform lend to a non-resident?
Some platforms require a Swiss address or work permit and check income in francs. Conditions vary by provider; read the published eligibility criteria and ask for written confirmation before sending your personal documents.
What can I do if the Swiss borrower does not repay?
Send a formal notice by registered mail, then file a debt collection request. If the debtor objects to the payment order, the signed acknowledgement of debt lets you ask the judge for provisional removal of the objection. A lawyer or cantonal legal advice service can help.