Credit for retirees in Switzerland: what the law and lenders allow

In Switzerland a pensioner can take out a private loan, but only after the lender has shown, under the Federal Consumer Credit Act (known by its German initials KKG, or LCC in French), that the amount could be repaid within 36 months without cutting into the legal subsistence minimum. Old-age (AVS/AHV), disability (AI/IV) and occupational (LPP/BVG) pensions all count as income, provided they are regular and documented.

Since 1 January 2026 the maximum interest rate on a cash loan has come back down to 10 %, and to 12 % for overdraft-type credit such as credit cards. For homeowners the key question is a different one: will the bank keep the mortgage at the same level once retirement has reduced your income? This page covers both, for English-speaking residents of Switzerland and for former cross-border workers.

Private loans for pensioners: what the Consumer Credit Act requires

The Act requires a creditworthiness check. The lender builds your budget from the subsistence-minimum standards used in Swiss debt enforcement, adds rent, taxes and health-insurance premiums, then verifies that the instalment, calculated as if the loan were repaid over 36 months, is still covered. A loan granted without this check can be declared void.

The role of IKO and ZEK

Lenders consult two databases. The IKO, the information office provided for by law, records every consumer loan and lease and is used for the affordability calculation. The ZEK, a private central credit register run by the lenders themselves, also records payment defaults, cards and certain official data such as bankruptcies. A negative ZEK entry is often enough on its own to sink an application.

Age limits, minimum pension and loan sizes

Each lender sets its own rules. At MultiCredit, for example, an AVS pensioner must have finished repaying before 70 and show at least 3,000 CHF net a month; a disability pensioner must finish before 65. Amounts range from 5,000 to 80,000 CHF. Your three most recent pension statements serve as proof of income.

The rules in force in 2026

The ceiling is reviewed each year with reference to SARON, the Swiss reference rate, and cannot fall below 10 % for cash loans. Actual offers for good profiles are often lower, and lower still for homeowners.

Worked example: a pensioner in the canton of Vaud

Margaret, 66, a former English teacher at an international school, lives in Lausanne. She receives 2,300 CHF of AVS and 1,900 CHF from her pension fund, 4,200 CHF a month, and pays 1,350 CHF in rent. To replace her car she asks for 12,000 CHF over 36 months. At the 10 % ceiling the instalment is about 387 CHF, and the loan ends at 69, before her lender's age limit.

What the budget calculation shows

The lender adds together the subsistence minimum for a single person, the rent, health-insurance premiums and estimated tax. If more than 387 CHF remains once those items are covered, the loan is granted. If not, the lender lowers the amount or declines: asking for a longer term does not help, because the legal test is always based on 36 months.

Homeowners: keeping the mortgage after retirement

For mortgages, Swiss banks apply a notional rate, often around 5 %, plus maintenance costs and amortisation. The total should not exceed roughly one third of income. In retirement that income falls, so the bank may require extra amortisation when the mortgage comes up for renewal. Planning that moment several years ahead is the best protection.

Preparing the renewal with your bank

Raiffeisen, the cantonal banks and UBS offer advice on keeping your home in retirement. Bring your pension-fund certificates, pension decisions and the balance of your third pillar. Indirect amortisation through a pillar 3a account, paid in before retirement, often brings the mortgage back to a sustainable level.

How to apply for a loan

Applications are made online or in a branch, and an answer often comes within a few days. A complete file avoids back-and-forth, especially for pensioners whose income comes from several funds or from abroad.

1. Request your personal data extract from the ZEK and make sure no old default is still listed.
2. Gather your AVS, AI or pension-fund decisions and three months of payment statements.
3. Prepare proof of rent or mortgage and your latest tax assessment.
4. Draw up your budget with a calculator, without forgetting health-insurance premiums.
5. Compare at least two offers on the effective annual rate and the term.
6. Sign the contract and, if needed, use the 14-day right of withdrawal the Act provides.

Mistakes that lead to a refusal

Refusals usually come from a current debt-collection entry in the enforcement register (Betreibungsregister or registre des poursuites) or a ZEK default. Another classic cause is credit cards whose unused limits are counted as commitments. Cancel cards you do not need, clear small debts and obtain an extract from the enforcement register before applying.

Beware of intermediaries who charge you

In Switzerland a credit intermediary may not charge the consumer for simply arranging a consumer loan. Any request for an upfront fee is a red flag. Check that the lender or broker holds a cantonal licence and is a member of the IKO.

Retired cross-border workers and foreign residents

A former cross-border worker who lives in France and draws a Swiss AVS pension is in principle not eligible for Swiss consumer credit, because Swiss residence is generally required. Borrowing will have to happen in the country of residence, using the Swiss pension as income, ideally with proof of the CHF-to-euro transfers. Foreign nationals living in Switzerland generally need a B or C permit.

Solutions when the loan is refused

A refusal under the Act often protects you from over-indebtedness. Other routes suited to pensioners still exist.

• AVS/AI supplementary benefits, which cover an insufficient budget without any debt.
• Free or low-cost debt advice from Caritas or Dettes Conseils Suisse (Schuldenberatung Schweiz).
• Pro Senectute, which grants one-off financial help to older people in need.
• A pawn loan from a cantonal pawn office or another licensed pawnbroker.

Frequently asked questions

Is my age alone enough to get me refused? No, the law sets no age limit. Lenders set their own, usually tied to the date of the final payment.

Will the 13th AVS pension be counted? First paid in December 2026, it raises your annual income. Some lenders will include it in the budget, but it does not change the monthly subsistence-minimum calculation.

How long does a ZEK entry stay on file? It depends on the type of information; request your extract to see the deletion date of each entry.

Can a disability pensioner borrow? Yes, if the pension is stable. Lenders often impose a shorter maximum term and a final payment before 65.

Can I repay early? Yes, the Act allows early repayment, with a reduction of the interest not yet accrued.