Document background
The No Interest Loan Agreement is primarily used when one party wishes to provide financial assistance to another without charging interest, whether for charitable, family, or strategic business purposes. This document is essential in Switzerland, where the law presumes that loans bear interest unless explicitly stated otherwise. The agreement typically includes detailed provisions about the loan amount, repayment schedule, default conditions, and remedies, all structured within the framework of Swiss law. It's particularly relevant in situations involving family loans, charitable lending, religious-based financing (where interest may be prohibited), or strategic corporate financing between related entities. The document ensures clear documentation of the parties' intentions regarding the interest-free nature of the loan while providing legal protection for both lender and borrower.
