Interest and charges on a Swiss pawn loan, in figures

Three interest bands at the Geneva office

The CPPG scale distinguishes between amounts: 0% up to CHF 350, 5% a year (0.416% a month) from CHF 351 to 850, then 7.5% a year (0.625% a month) from CHF 851 upwards.

The 6% pledge fee, paid only once

In Geneva, a pledge fee (droit d'engagement) of 6% of the amount lent is added to the interest. It is charged only once, whatever the length of the contract, which weighs more heavily on a six-month loan than on an extended pledge.

Who sets CPPG rates

Article 5 of the Geneva LCPPG gives the board of directors the task of setting rates each year, subject to approval by the Council of State. In particular cases, they may be lowered to as little as 1.5%, under the same article.

Official example: a watch pledged for CHF 2,500

Theoretical CPPG calculation: CHF 2,500 at 7.5%, a CHF 150 pledge fee, CHF 187.50 in interest. At the first due date, the borrower owes CHF 2,837.50; after an instalment of CHF 500, the balance stands at CHF 2,337.50.

Ancillary charges listed by the CPPG

A reminder letter costs CHF 8, a notice of sale CHF 15. Paying by QR-bill adds CHF 2 to 4, whereas paying cash at the Geneva counter remains free. The office also publishes a tariff directive, as at 1 July 2023.

Default charge and realisation costs

If the loan remains unpaid one month after the notice of sale, the CPPG levies a default charge (droit moratoire) of 1% of the balance. In the event of a sale, 10% charges are added, detailed on the page on pledge auctions in Switzerland.

Zurich: 1% a month, counted by whole month

The Pfandleihkasse of the Zürcher Kantonalbank charges interest of 1% a month, with no other charges if interest is paid on time in cash. A month started is due in full from its first day, even for early repayment.

Unquantified Zurich charges

The ZKB announces additional charges for reminders, invoicing and registered mail, without publishing the amounts. Before pledging an item in Zurich, it is therefore worth asking for the details at the Zurlindenstrasse counter.

Bern: a ceiling modelled on consumer credit

Article 14b of the Bern HGV ordinance forbids pawnbrokers from exceeding the federal maximum rate for consumer credit; this rate covers storage, upkeep and insurance. Realisation costs may be charged only where there is a surplus (article 14c).

The cut in the federal maximum rate on 1 January 2026

According to the FDJP press release of 31 October 2025, the ceiling for cash loans falls from 11% to 10%, and that for overdrafts from 13% to 12%. Through the reference in article 14b HGV, this 10% should apply in Bern.

Comparing the real cost by duration

Over a year, Zurich works out at about 12% in interest; Geneva at 13.5% in the first year (7.5% plus the 6% pledge fee), then less. Extension options are set out under pawn loan duration in Switzerland.

Placing Swiss rates alongside France

The French Crédit Municipal institutions each publish their own scale, with a different approach to entry charges. For a calculation method common to all countries, see how interest on a pawn loan is calculated, then the page on public pawnshops in Switzerland.

Published scales and reference texts

• CPPG, page Prêts: Geneva rate scale at 0%, 5% and 7.5%, pledge fee and ancillary charges.
• Pfandleihkasse der Zürcher Kantonalbank: Monthly rate of 1%, invoicing rules and conditions for extending Zurich contracts.
• Ordonnance bernoise HGV (BSG 930.11): Bern text capping pawnbrokers' rates at the federal maximum for consumer credit.
• Département fédéral de justice et police (DFJP): Federal department behind the cut in the maximum consumer credit rate to 10% on 1 January 2026.

Estimating the cost of your pledge

1. Place the amount you hope for within the scale: under CHF 350, between CHF 351 and 850, or above in Geneva.
2. Add the 6% pledge fee if the item is deposited at the CPPG, since it is charged once whatever the term.
3. Multiply the monthly rate by the number of months planned, counting any month started in Zurich as a full month.
4. Allow for reminder, notice-of-sale or QR-bill payment charges if you do not pay in cash.
5. Compare the total with the 20% instalment required in Geneva for each extension.
6. Ask at the counter for a written statement before signing, especially for the unpublished Zurich charges.

Published Swiss scales (as at October 2026)

Useful documents for an accurate statement

• Identity document and, in Geneva, an accepted residence permit
• Pawn ticket or Versatzschein for any interest payment
• Interest invoice sent by the ZKB about twenty days before the due date
• Loan example published by the CPPG to check the calculation
• CPPG tariff directive on the pledge fee

Pitfalls on the cost of a Swiss pawn loan

• Comparing only the Geneva annual rate of 7.5% with the Zurich 1% a month while forgetting the 6% pledge fee.
• Repaying in Zurich on the 2nd of the month expecting to pay only two days' interest, when the whole month is due.
• Paying by QR-bill without knowing that paying cash at the Geneva counter avoids the CHF 2 to 4 charges.
• Ignoring the notice of sale: one month later, the CPPG applies a default charge of 1% of the balance.
• Accepting a rate above the federal ceiling from a Bern lender, when article 14b HGV forbids it.

General information, up to date as of October 2026 and non-contractual: always check the terms with the Crédit Municipal or the institution concerned.