Maximum interest rate for consumer loans in Switzerland
For loans subject to the Consumer Credit Act (KKG), the statutory maximum interest rate has been 10 % annual percentage rate for cash loans and 12 % for overdraft loans since 1 January 2026. This is based on the calculation formula in the Ordinance to the Consumer Credit Act (VKKG). Source shown directly below: Federal Council media release of 31.10.2025, admin.ch.
What is the maximum interest rate currently?
| Type of loan | Maximum interest rate | In force since | Source |
|---|---|---|---|
| Cash loan (consumer loan with payout) | 10 % annual percentage rate | 1.1.2026 | admin.ch, media release 31.10.2025 |
| Overdraft loan (e.g. credit card) | 12 % annual percentage rate | 1.1.2026 | admin.ch, media release 31.10.2025 |
The figure applies to the annual percentage rate, that is, the total cost of the loan as a percentage per year, not to a nominal rate. The setting applies indefinitely but is reviewed at least once a year.
How is the maximum interest rate set?
The rate is not negotiated politically, but calculated using a formula that has been set out in the Ordinance to the Consumer Credit Act (VKKG) since 2016. The process according to the Federal Council’s media release of 31 October 2025:
- Calculation basis is the three-month compounded SARON (SAR3MC), a reference rate of the Swiss money market.
- Surcharge: to this base, 10 percentage points are added for cash loans, 12 percentage points for overdraft loans.
- Rounding: the value is rounded up or down to the nearest whole number according to standard commercial rounding rules.
- Floors: the maximum interest rate must be at least 10 % for cash loans and at least 12 % for overdraft loans.
- Review: at least once a year, at the end of August. Where an adjustment is needed, the new rate takes effect in January of the following year. The adjustment is carried out by the Federal Department of Justice and Police (FDJP).
Specifically for the current reduction: the SAR3MC reference rate stood at around 0.0054 % at the end of August 2025. For reference values between 0.0 % and 0.49 %, the formula prescribes a reduction from 11 % to 10 % for cash loans and from 13 % to 12 % for overdraft loans. The maximum interest rate is therefore currently at the lowest possible level.
Why there is a cap at all
The Federal Council states the purpose explicitly:
“The maximum interest rate serves to protect consumers.” — Federal Council media release, 31.10.2025
The cap is part of the protective system of the Consumer Credit Act (KKG). For agreements subject to the KKG, this also includes the mandatory assessment of ability to repay, the right of withdrawal and the right to early repayment. Loans above CHF 80,000 and other agreements listed in Art. 7 KKG are excluded from the scope.
Why the maximum interest rate does not match the market rate
Between the reference rate and the maximum interest rate lies a surcharge of 10 percentage points (cash loan) or 12 percentage points (overdraft loan). This covers the costs that arise for small unsecured loans: default risk, assessment and administration. In addition, the floors of 10 % and 12 % apply. This is why the maximum interest rate does not fall further even with a reference rate close to zero.
How has the maximum interest rate developed?
| In force from | Cash loan | Overdraft loan | Source |
|---|---|---|---|
| 1.1.2025 | 11 % | 13 % | admin.ch, media release 31.10.2025 |
| 1.1.2026 | 10 % | 12 % | admin.ch, media release 31.10.2025 |
The maximum interest rate was thus lowered by one percentage point for the second time in a row, effective 1 January 2026.
What does the maximum interest rate mean for your offer?
The maximum interest rate is an upper limit, not a normal value. It says nothing about which interest rate a provider charges or what is offered in your specific case.
| Value | |
|---|---|
| Legally permissible for KKG cash loans (since 1.1.2026) | maximum 10 % annual percentage rate |
| eny Credit’s terms | 4.90 % to 9.90 % annual percentage rate, depending on creditworthiness |
These two figures should be kept apart: 10 % is the statutory limit for cash loans subject to the KKG; 9.90 % is the highest rate applied by eny Credit. Within this range, your rate is set individually after the assessment of ability to repay and creditworthiness.
When comparing offers, what counts is the specific annual percentage rate in your offer and the total cost over the term. For KKG cash loans, the annual percentage rate may not exceed the statutory cap.
Cash loan or overdraft loan — which cap applies?
| Cash loan | Overdraft loan | |
|---|---|---|
| How it works | a fixed amount is paid out and repaid in instalments | a credit limit that is drawn on flexibly |
| Typical form | personal loan, consumer loan, car loan | credit card, account overdraft |
| Maximum interest rate since 1.1.2026 | 10 % | 12 % |
| Surcharge in the VKKG formula | 10 percentage points | 12 percentage points |
The Federal Council’s media release explicitly cites credit cards as an example of overdraft loans.
Practical consequence: anyone who leaves a credit card debt outstanding for a long time pays up to 12 % under the statutory system, while a maximum of 10 % is permitted for a cash loan.
What applies if an agreement exceeds the maximum interest rate?
According to the Federal Council’s media release, KKG loan agreements with an excessive interest rate are void; in principle only the loan sum remains owed, but not interest and costs. This information does not replace legal advice. If you suspect that an agreement exceeds the limit applicable to it, have the individual case reviewed by a consumer protection organisation or legal advisor.
When the instalments become a burden
A statutory maximum interest rate protects against overpriced agreements, not against a loan that is too large. Anyone who already has payment difficulties should not take out a further loan. Free and independent help is provided by the specialist offices of Schuldenberatung Schweiz.
Granting a loan is prohibited if it leads to the over-indebtedness of the consumer.
Related pages
- Facts about personal loans — figures, rules and limits at a glance
- Credit assessment — what is examined and why
- Interest calculator — effect of the annual percentage rate on the total cost
- Consumer loan — terms and process at eny Credit
Frequently asked questions
What is the statutory maximum interest rate for consumer loans in Switzerland?
Since 1 January 2026, a maximum interest rate of 10 % annual percentage rate applies to cash loans subject to the KKG; for KKG overdraft loans it is 12 %. Source: Federal Council media release of 31.10.2025.
Who sets the maximum interest rate and how often does it change?
The rate is calculated according to a formula in the VKKG that has applied since 2016; the adjustment is carried out by the FDJP. It is reviewed at least once a year, at the end of August; a change takes effect in January of the following year.
What is the difference between the cap for cash loans and the one for overdraft loans?
The surcharge in the formula differs in size: 10 percentage points for cash loans, 12 percentage points for overdraft loans. Accordingly, the maximum interest rate has been 10 % and 12 % respectively since 1.1.2026. Cash loans are paid out and repaid in instalments, while overdraft loans are flexible limits as with credit cards.
How high was the maximum interest rate the previous year?
In 2025 it was 11 % for cash loans and 13 % for overdraft loans. Since 1 January 2026, 10 % and 12 % respectively apply.
Does the maximum interest rate mean that all providers charge this rate?
No. It is an upper limit. Actual rates are lower and are set individually according to creditworthiness. At eny Credit, the annual percentage rate is 4.90 % to 9.90 %, depending on creditworthiness.
What applies if a loan agreement exceeds the maximum interest rate?
According to the Federal Council's presentation, loan agreements with an excessive interest rate are void under the Consumer Credit Act; only the loan amount is then owed, but not interest and costs. A legal assessment is required for the individual case.
Does the maximum interest rate also apply to mortgages, business loans or loans above CHF 80,000?
No. The maximum rates apply to loans subject to the KKG. Loans secured by mortgage, loans to businesses, loans above CHF 80,000 and other agreements listed in Art. 7 KKG are excluded.
Will the maximum interest rate fall again for 2027?
This depends on the SAR3MC reference rate at the end of August 2026. Because the rate for cash loans must amount to at least 10 % under the formula, a further reduction is not possible under the current mechanism. If the reference rate rises, the maximum interest rate can turn out higher again.
Publisher: eny Finance AG, Zürich · Last updated: 06.08.2026
Schuldenberatung Schweiz, Fachstellenverzeichnis, abgerufen 30.07.2026 — https://schulden.ch/fachstellen/