Loan Agreement Switzerland (Darlehensvertrag)

A Loan Agreement Switzerland (Darlehensvertrag) is a contract under which a lender (Darlehensgeber) transfers ownership of a sum of money or fungible goods to a borrower (Darlehensnehmer) who obliges himself to return an equivalent amount of the same kind and quality, governed by the Swiss Code of Obligations (Obligationenrecht, OR) Articles 312 through 318. Article 312 OR defines the Darlehen (loan) as a contract whereby the lender transfers ownership of money (Gelddarlehen) or other fungible things (Sachdarlehen) to the borrower, who must return an equivalent quantity of the same kind.

Swiss law distinguishes the Darlehen (Articles 312-318 OR) from the Gebrauchsleihe (gratuitous loan for use — Articles 305-311 OR) and the Hinterlegung (deposit — Articles 472-491 OR). The Darlehen transfers ownership of the lent items to the borrower, who becomes the owner and bears the risk of loss (Preisgefahr). The borrower's obligation is to return items of the same kind and quantity — not the identical items received.

Interest (Zins) on a Darlehen is governed by Article 313 OR. For loans between private individuals (Privatdarlehen), interest is not presumed — the contract must expressly stipulate the Zinssatz (interest rate) for interest to be payable. For commercial loans (kaufmännische Darlehen) — loans where at least one party acts in a commercial capacity — interest is presumed even without express agreement under Article 313 paragraph 2 OR. The maximum permissible interest rate for consumer loans (Konsumkredite) is regulated by the Bundesgesetz über den Konsumkredit (KKG) and the Verordnung zum Konsumkreditgesetz (VKKG) — as of 2026, the maximum effective annual interest rate (effektiver Jahreszins) is 12% for cash loans and 14% for credit card overdrafts, published periodically by the Eidgenössische Preisüberwachung (Price Surveillance Authority).

The Konsumkreditgesetz (KKG) applies to consumer credit agreements where a gewerbsmässiger Kreditgeber (commercial lender) grants credit of CHF 500 to CHF 80,000 to a natural person for non-commercial purposes. The KKG requires the lender to conduct a Kreditfähigkeitsprüfung (creditworthiness assessment), provide the borrower with a written contract containing all essential terms (Article 9 KKG), and grant the borrower a 14-day Widerrufsrecht (right of withdrawal under Article 16 KKG). The KKG does not apply to private loans between individuals (Privatdarlehen), mortgage-secured loans (hypothekarisch gesicherte Darlehen), or loans between related parties (nahestehende Personen).

For corporate loans — such as Gesellschafterdarlehen (shareholder loans) from a Gesellschafter to a GmbH or AG — Swiss tax law requires that the interest rate comply with the safe harbour rates published annually by the Eidgenössische Steuerverwaltung (ESTV) in the Rundschreiben (circular letter) on permissible interest rates for shareholder loans. Deviations from these safe harbour rates may trigger Verrechnungssteuer (withholding tax at 35% under the Verrechnungssteuergesetz, VStG) or be recharacterised as verdeckte Gewinnausschüttung (hidden profit distribution) by the cantonal Steueramt.

Interest payments on loans are subject to the Verrechnungssteuer (federal withholding tax) of 35% under the VStG when the interest is paid by a Swiss debtor who is a legal entity or who qualifies as a gewerbsmässiger Schuldner. For loans between private individuals, the Verrechnungssteuer does not apply to the interest payments, but the interest income must be declared in the recipient's Steuererklärung (tax return) as Einkommen aus beweglichem Vermögen (income from movable assets).

Security for Swiss loans commonly takes the form of a Schuldbrief (mortgage certificate under ZGB Articles 842-865) for real estate-secured loans, a Faustpfand (possessory pledge under ZGB Articles 884-894) for movable asset security, a Forderungsverpfändung (pledge of claims under ZGB Article 899) for receivables, or a Bürgschaft (suretyship under OR Articles 492-512). The Bürgschaft requires notarial authentication if the guaranteed amount exceeds CHF 2,000 under Article 493 paragraph 2 OR.

A Loan Agreement Switzerland is required whenever one party (Darlehensgeber) lends money to another party (Darlehensnehmer) with the expectation of repayment, whether the loan is between private individuals, between companies, between a shareholder and a company, or between family members. Article 312 OR governs the Darlehen, and while oral agreements are technically valid for amounts not subject to the KKG, written documentation is essential for enforceability and tax compliance.

A Darlehensvertrag is needed when a private individual lends money to another person — a family loan (Familiendarlehen), a loan between friends, or a loan to a business partner. Without written documentation, disputes over the loan amount, repayment terms, and interest obligations become difficult to resolve before the cantonal Friedensrichter (justice of the peace) or Bezirksgericht.

The agreement is required when a Gesellschafter (shareholder or member) lends money to their own GmbH or AG — the Gesellschafterdarlehen must be documented with terms that comply with the ESTV safe harbour interest rates to avoid recharacterisation as verdeckte Gewinnausschüttung (hidden profit distribution) or Eigenkapital (equity) by the cantonal Steueramt or by FINMA in the case of regulated entities.

A loan agreement is needed when the parties agree on security (Sicherheiten) — collateral such as Grundpfandrechte (mortgage liens), Faustpfand (possessory pledge), Zession (assignment of receivables), or Bürgschaft (suretyship). Each security type has specific formal requirements under Swiss law — Bürgschaft over CHF 2,000 requires öffentliche Beurkundung under OR Article 493 paragraph 2.

The contract is necessary when a commercial lender (gewerbsmässiger Kreditgeber) extends a Konsumkredit to a natural person — the Konsumkreditgesetz (KKG) mandates a written agreement containing the Nettodarlehensbetrag, effektiver Jahreszins, Rückzahlungsplan, and all applicable fees. Non-compliance with the KKG renders the credit agreement void (nichtig) and the borrower is only required to return the Nettodarlehensbetrag (net loan amount) without interest.

Under OR Articles 312-318, the KKG, and applicable ESTV circulars, every loan arrangement in Switzerland benefits from comprehensive written documentation that establishes the parties' rights, repayment obligations, interest terms, and security arrangements.

A valid Loan Agreement Switzerland under the Swiss Code of Obligations (OR) Articles 312 through 318, the Konsumkreditgesetz (KKG) where applicable, and relevant ESTV guidelines must contain the following essential elements.

Identification of Parties: Full legal names, dates of birth (for natural persons), AHV-Nr. (756.XXXX.XXXX.XX), and domicile addresses of both the Darlehensgeber (lender) and Darlehensnehmer (borrower). For legal entities, the company name, UID-Nummer (CHE-XXX.XXX.XXX), registered office (Sitz), and the name and authority of the signing representative must be stated. For Gesellschafterdarlehen, the relationship between the lender and the borrowing company should be disclosed.

Loan Amount (Darlehenssumme): The principal amount of the loan stated in CHF or another agreed currency. For non-CHF loans, the applicable exchange rate or reference (e.g., SNB reference rate published by the Schweizerische Nationalbank) should be specified. The date and method of disbursement (Auszahlung) — bank transfer to a specified IBAN, cheque, or cash against receipt — must be documented.

Interest Rate (Zinssatz): The annual interest rate — whether fixed (Festzins) or variable (variabler Zins). For variable rates, the reference benchmark must be specified — commonly the SNB policy rate, SARON (Swiss Average Rate Overnight published by SIX Swiss Exchange), or the hypothekarischer Referenzzinssatz. For consumer loans under the KKG, the effektiver Jahreszins (effective annual interest rate) must be stated and may not exceed the maximum rate published by the Eidgenössische Preisüberwachung. For Gesellschafterdarlehen, the rate must comply with the ESTV Rundschreiben safe harbour rates to avoid tax recharacterisation.

Repayment Terms (Rückzahlungsmodalitäten): The repayment schedule — whether the loan is repayable in a single payment (Endfälligkeit or Bullet-Rückzahlung), in equal instalments (Annuität), or in declining instalments (Amortisation). The frequency of payments (monthly, quarterly, annually), the first payment date, and the final maturity date (Fälligkeitsdatum) must be specified. Under Article 318 paragraph 1 OR, if no repayment term is agreed, the loan is repayable upon six weeks' notice by either party.

Late Payment (Verzug): The consequences of late payment — Verzugszinsen (default interest) under Article 104 OR at 5% per annum (the statutory default rate), or a contractually agreed higher rate. The conditions under which the entire outstanding balance becomes immediately due (Vorfälligkeitsklausel or Acceleration Clause) — typically non-payment of two or more consecutive instalments, insolvency (Konkurs or Nachlassverfahren under the SchKG), or material breach of the loan agreement.

Security (Sicherheiten): Description of any collateral provided — Grundpfandrecht (mortgage lien — Grundpfandverschreibung or Schuldbrief under ZGB Articles 793-883), Faustpfand (possessory pledge under ZGB Articles 884-894), Forderungsverpfändung (pledge of receivables under ZGB Article 899), Sicherungsübereignung (transfer of title as security), or Bürgschaft (suretyship under OR Articles 492-512). The formal requirements for each type of security must be observed — Bürgschaft over CHF 2,000 requires öffentliche Beurkundung, and Grundpfandrecht requires Grundbuch entry.

Prepayment (Vorzeitige Rückzahlung): Whether the borrower may repay the loan before the agreed maturity date, and any Vorfälligkeitsentschädigung (prepayment penalty or break funding cost) payable. Under Article 312 paragraph 2 OR, the borrower of a zinsfreies Darlehen (interest-free loan) may repay at any time. For interest-bearing loans, the contract should specify prepayment rights and any applicable penalties.

Tax Provisions: Reference to the Verrechnungssteuer (withholding tax) obligations under the VStG if applicable. For Gesellschafterdarlehen, a statement that the agreed interest rate complies with the ESTV safe harbour rates. For interest income, a reminder that the lender must declare interest received in their Steuererklärung as Einkommen aus beweglichem Vermögen.

Forms-legal.com provides this Loan Agreement Switzerland template as a practical starting point. Swiss lending law involves interactions between contract law (OR), consumer protection (KKG), tax law (DBG, VStG, ESTV Rundschreiben), and security law (ZGB, SchKG) — every lender and borrower should consult a licensed Rechtsanwalt or Treuhänder before executing a Darlehensvertrag, particularly for Gesellschafterdarlehen and secured loans.

Complete the Loan Agreement Switzerland template by entering the required information in each section. Lender and borrower details must match official identity documents. For AHV-Nr., use the format 756.XXXX.XXXX.XX. For corporate borrowers, include the UID number (CHE-XXX.XXX.XXX). For the loan amount, always use CHF with apostrophe thousand separators (e.g. CHF 50'000). For interest rate, check ESTV safe harbour rates if this is a Gesellschafterdarlehen. For consumer loans, verify compliance with KKG maximum rates. Both parties must sign; for secured loans, ensure any Bürgschaft is separately notarised.

The Darlehensvertrag Switzerland is governed by OR Articles 312-318 (SR 220). Key requirements: loan is consensual (valid without written form for non-KKG amounts); Verrechnungssteuer (35%) under VStG applies to interest paid by corporate debtors; ESTV safe harbour interest rates apply to Gesellschafterdarlehen; KKG mandates written form and creditworthiness check for consumer credit CHF 500-80,000; Bürgschaft over CHF 2,000 requires notarial authentication (OR Art. 493 para. 2); default interest is 5% p.a. under OR Art. 104; enforcement via SchKG (Betreibungsamt, Zahlungsbefehl, Pfändung).

Common mistakes in Swiss loan agreements: omitting AHV-Nr. or UID details; not specifying the interest rate explicitly for private loans (no interest accrues without explicit agreement per OR Art. 313); setting Gesellschafterdarlehen interest above ESTV safe harbour without documentation; missing repayment schedule leading to default under OR Art. 318 six-week notice rule; forgetting Bürgschaft notarisation above CHF 2,000; not including Verrechnungssteuer clause for corporate debtors; using vague default provisions that fail to trigger the acceleration clause.