The Consumer Credit Act: your personal loan rights

The KKG protects certain forms of private financing

The Swiss Consumer Credit Act, known as the KKG, contains rules on affordability assessment, contractual information and consumer rights. In particular, it aims to prevent over-indebtedness. These protections do not automatically apply to every arrangement commonly called a “personal loan”. The actual agreement must first fall within the statutory scope.

This overview focuses on ordinary cash loans for private purposes. Leasing, cards with instalment options and other agreements are partly subject to different or restricted provisions. Individual rules must therefore not be transferred unchecked across all products.

Which amounts and purposes are covered

The KKG concerns consumers acting outside their professional or commercial activity. Art. 7 excludes, among others, loans below 500 francs or above 80'000 francs, certain short-term loans and other financing. Consumer loans arranged in a coordinated manner for the same person are added together for the amount threshold.

The 80'000-franc threshold is not a Swiss-wide maximum for all permissible personal loans. It defines the Act’s scope. Whether a provider offers a larger amount is another question. The differences between personal loans, consumer credit and small loans should therefore be explained through the contract, not advertising alone.

Affordability must be assessed before conclusion

Under Art. 27a and 28, for a cash loan within scope the lender must assess whether repayment is possible without drawing on protected income. The canton of residence’s guidelines and the items specified in the KKG are decisive. These include actual rent, taxes calculated using the withholding tax table and reported commitments.

The calculation must assume amortisation within 36 months, even with a longer contractual term. This prevents excessive financing from appearing suitable solely through a very small long-term instalment. Evidence and further investigations may be necessary. Accurate application information is therefore as important as the calculation itself.

What the contract must contain

A cash loan agreement within the KKG must be concluded in writing, and the consumer receives a copy. Required information includes, in particular, the net loan amount, effective annual interest rate, repayment arrangements and information about withdrawal and early repayment. Information underlying affordability assessment must also be documented as required by law.

Do not read only the monthly instalment. Check the number of payments, term, cost components and any additional products. Payment protection insurance does not automatically guarantee cover for every later payment difficulty. Unclear clauses should be explained before signing so that you truly understand the commitment.

Maximum interest and individual terms

Since January 2026, the statutory ceiling for cash loans within the KKG has been 10 percent and for overdraft credit 12 percent. Rates set by the Federal Council may change. An old or general percentage in the legislation must therefore not be used unchecked as the current ceiling.

The ceiling does not mean everyone obtains a loan at the minimum rate. The individual offer still depends on creditworthiness. Compliance with the ceiling does not replace positive affordability either. A legally compliant price does not automatically make excessive household debt permissible.

Withdrawal, early repayment and brokerage

For contracts with a right of withdrawal under Art. 16, the period is 14 days from receipt of the contract copy. The declaration must be in writing. For early fulfilment under Art. 17, you are entitled to a waiver of interest for the unused period and an appropriate reduction of related costs. These are different rights at different times.

Under Art. 35, the consumer owes the intermediary no remuneration for brokering consumer credit. The lender’s brokerage costs must not be passed on as a separate charge. This does not mean the loan itself is interest-free. The guide to responsible credit brokerage explains the practical distinction.

Statutory protection is not an entitlement to approval

A provider may have additional acceptance criteria. Budgetcredit’s requirement to be an adult aged at least 18 is, for example, a specific eligibility condition. It should not be confused with an inaccurate claim that the KKG has no provision at all for minors: Art. 13 includes a consent rule. This does not mean Budgetcredit offers loans to minors.

If you have doubts about an agreement, obtain specialist advice and retain documents. The KKG provides consequences for certain breaches, but these do not justify stopping payments on your own initiative without examining the case. A clear agreement and realistic budget remain the best basis for an informed decision.

Frequently asked questions

Does the KKG apply to every loan up to 80’000 francs?

Not on the amount alone. Purpose, agreement type and other statutory exceptions must also be checked.

Is a loan automatically approved from age 18?

No. Adulthood is an eligibility requirement; affordability and further provider conditions must also be met.

Can I repay a KKG cash loan early?

Yes. Art. 17 provides for early fulfilment and the corresponding reduction of interest and costs for the unused period.

Sources and information date

Information as of 13 October 2026. The applicable rules, individual assessment and contract documents are decisive.

• Consumer Credit Act, particularly Art. 7, 9, 13–17, 28 and 35
• Federal Office of Justice: Consumer Credit Act and current interest ceilings
• Budgetcredit: eligibility and offer

Credit must not be granted if it would lead to over-indebtedness. A budget calculation provides a non-binding indication, not a loan offer.