Updated 19.07.2024

Simplified loan agreement

Private or commercial loan with or without interest, to be repaid on a due date, without additional guarantees or restrictions.

Use this contract:

  • When you want to grant a loan without any particular guarantees, restrictions or penalties.
  • To grant a loan to be repaid on a due date, in a single repayment.
  • Whether the loan is interest-free, with simple or compound annual interest, or a one-off interest payment.
  • Whether you are lending in Swiss francs or foreign currency, for any amount.
  • Whether the loan is between individuals or businesses.

30 CHF/document


Jurisdiction: Switzerland
Swiss Legal Guarantee. No further checks are needed

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Protect yourself legally as a lender with the following options: 

  • Stipulation of the conditions precedent to the granting of the loan and request for the provision of preliminary security. 
  • Interest on arrears and obligation to cover any additional damage in the event of late repayment. 
  • Obligation to regularly confirm declarations regarding the borrower’s solvency, financial situation, and legal status. 
  • Immediate termination in the event of the borrower’s bankruptcy or insolvency. 

Safeguard your interests as a borrower by using the following clauses: 

  • Possibility of early, total or partial repayment. 
  • Flexible calculation of simple interest with the option of a single or regular payment. 
  • Option to specify a single interest rate that does not depend on the term of the loan. 
  • Option to accumulate compound interest at different periods.

Our simple loan contract template allows you to draft a professional simple loan contract to be signed between a lender and a borrower to secure the repayment of a loan. Using this agreement, it’s possible to mitigate financial risks and guarantee the repayment of the lent amount. 

Lenders use our simple loan agreement sample: 

  • To conclude a domestic or international loan until a maturity date, in Swiss francs or any foreign currency.
  • To provide a borrowing free of any guarantees or restrictions, and to ensure reimbursement.
  • To grant an interest-free borrowing or a loan with an interest rate, whether simple or compound.

Key aspects of a simple loan contract 

  • A basic loan agreement template is suitable for use by an individual, a registered business, or a company. 
  • This document should specify the principal sum and duration of the loan as well as describe the interest rate, where appropriate. 
  • By using a simple loan agreement, creditors waive any security or restriction on the borrower, along with any additional penalty. 
  • The lender may request sureties as a condition precedent or draft in a separate document. 

Four tips on a simple loan contract 

When using our basic loan contract template, defend your financial and legal interests as the lender with the following tips, for example: 

  • Carefully verify the financial situation of the borrower since the simplified borrowing sample provides no additional security. 
  • Demand preliminary guarantees and disclosure of the borrower’s financial situation before granting the loan. 
  • Include an acceleration clause in case the borrower becomes insolvent, starts debt restructuring proceedings, or acknowledges their inability to repay the borrowing. 
  • When applying an interest rate, opt for regular payments to occasionally verify the borrower’s solvency. 

Create a simple loan contract with AdminTech 

With AdminTech’s online document builder and the example of a simple loan agreement, just fill in the fields with the relevant information to adjust the document to your particular needs. 

A professional simple loan contract template allows to cover the following information:  

  • Parties’ contact details and identification 
  • Currency and amount of loan 
  • Granting date and preconditions 
  • Reimbursement date 
  • Interest rate and accrual periods 
  • General warranties and representations of the borrower. 

FAQ on a simple loan contract 

What options does AdminTech’s simple loan agreement sample offer for interest rates? 

AdminTech’s simple loan agreement sample offers lenders a choice between different types of interest. Single interest is charged on the entire amount borrowed, regardless of the term of the loan. 

Annual interest is calculated on the term of the loan, proportional to a calendar year. It can be simple, which is paid at the end of the loan term or at regular intervals. It can also be compound interest, accrued as per the table of the basic loan agreement template.  

How can I cancel a loan agreement once it has been approved? 

A simple loan contract is a binding legal document that obliges the lender to grant a loan and the borrower to repay it according to the agreed terms. Once a loan agreement is signed, it can be cancelled if: 

  • The contract was entered into under false or fraudulent circumstances. 
  • The terms of the contract have not been met. 
  • The borrowing is repaid on a date specified in the agreement. 
  • Early repayment of the loan (accelerated repayment). 

When should you use a simplified loan agreement? 

Lenders usually impose sanctions on borrowers, both as a deterrent and as compensation. Unlike the standard loan template, our basic loan contract template does not provide such measures, it should only be used for the following purposes: 

  • Borrowing between related parties, such as family, friends, colleagues, or trusted business partners. 
  • Lending to a solvent and highly credit-worthy borrower. 
  • Formalising a loan concluded in a verbal form, for the purpose of reporting and proof. 

What to do if the loan is not repaid on time? 

In addition to the provisions of the simple loan agreement template, the lender has the following legal remedies to ensure repayment of the loan: 

  • Transferring a debt to a debt collection agency for a fee. 
  • The quest for a borrower’s commitment to provide personal assurance or collateral, typically in the form of a pledge or other security. 
  • If necessary, the involvement of a third-party guarantor. 
  • Recovery of the loan from the borrower in the courts of the borrower’s country of residence. 

In practice, parties often grant a short grace period before such instruments can be applied. 

What are the different types of loans?  

There are different types of open-ended loans, depending on the wishes of the parties. In addition to the simple loan contract template, AdminTech’s online document builder specialises in various options, some samples of which are shown below: 

  • A loan repayable in instalments 
  • A cash facility instrument with a maximum but undefined amount 
  • Convertible borrowing with share purchase rights 
  • Subordinated loan with deferral of payment. 

What is the difference between a promissory note and a loan? 

A loan agreement is signed in advance with a simple loan template, whereas a promissory note formalises a commitment to lend or repay the debt in any form.  

How can I change the terms of my loan? 

The terms of a business loan, in particular, can change unexpectedly as the borrowing company grows. Sometimes additional loans with the same terms are required.  

At times, the borrower may be unsure of the needed loan amount. In such cases, a loan agreement can be made in which the borrower has the option to borrow money but is not obligated to borrow up to a certain amount. 

Is a written form for a loan agreement necessary? 

While verbal form is possible, we strongly recommend that you draft an agreement using our example of simple loan agreement to: 

  • Clearly express the intentions and terms of both parties. 
  • Establish legal title in case of debt enforcement (for example: mortgage or collateral). 
  • Provide legal proof in the event of transferring the loan to a third-party assignee. 
  • Have a necessary document for accounting, reporting, and tax purposes. 

How can a lender guarantee a successful lending experience? 

To ensure a fruitful borrowing experience, it’s often recommended to: 

  • Require an initial guarantee from the borrower and set a limit. 
  • Offer flexibility on amount and duration, depending on the situation. 
  • Allow a settlement period for an amicable resolution. 
  • Create and sign a simplified loan agreement using our simple loan agreement template. 
  • Use additional surety documentation to secure repayment. 
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Draft your legally binding basic loan agreement with the AdminTech online document builder.