Consumer loan

A consumer loan finances private consumption rather than business activity. In Switzerland, regulated consumer credit rules aim to prevent over-indebtedness through creditworthiness checks, mandatory information, cost transparency and limits on certain charges. Depending on structure, the regime may cover cash loans, payment deferrals, credit cards or consumer leasing, while exclusions can apply. Lenders must document the agreement and assess affordability before disbursement. Borrowers should compare the effective cost, duration, early repayment terms, insurance add-ons and consequences of default.