Loan agreement

A loan agreement obliges the lender to make funds, or sometimes other fungible assets, available and the borrower to repay the equivalent. Swiss practice distinguishes private loans, commercial credit facilities and regulated consumer credit. Key terms include amount, drawdown, interest, repayment, maturity, default, covenants, collateral, set-off and governing law. Form requirements are usually limited, but special rules may apply to consumer loans, mortgages, sureties or corporate approvals. Clear documentation is essential for enforcement and for tax and accounting treatment.