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The Personal Loan Letter is commonly used in Switzerland for documenting private lending arrangements between individuals or small entities. This document type is particularly relevant when formal bank loans are not preferred or necessary, but parties still need a legally binding framework for their lending arrangement. Under Swiss law, while verbal loan agreements can be valid, a written Personal Loan Letter provides clear evidence of the arrangement and helps prevent future disputes. The document typically includes essential information such as loan amount, interest rate, repayment schedule, and party details, all structured to comply with Swiss Code of Obligations requirements. It's especially useful for family loans, friend-to-friend lending, or small business arrangements where a full facility agreement would be excessive but proper documentation is still desired.

1. Date and Location: Current date and place of execution (required under Swiss law)

2. Lender Details: Full name and address of the person providing the loan

3. Borrower Details: Full name and address of the person receiving the loan

4. Loan Amount: The principal amount being lent, stated in Swiss Francs or specified currency

5. Interest Rate: Clear statement of the interest rate (if any) and calculation method

6. Repayment Terms: Details of how and when the loan will be repaid, including payment schedule

7. Bank Details: Account information for disbursement and repayment

8. Signatures: Space for both parties to sign and date the letter