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Markets/en/Portal:Small Loans/Contracts-in-Action:Small Loans

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Section 8 of the Small Loans portal, instantiated from the contracts in action model. All packages below are drafts, intended to be validated by lawyers before any operational use. Figures define ranges, not advice.

Contracts in action: small loans

Package 1: Family loan, talk-first

Intended users: siblings, cousins, parents and adult children. Validation status: draft.

  • Fixed parameters: no interest (clause S3) · talk-first clause (S7) · recovery ladder with mediation before anything else (S8, S9) · privacy of all reminders.
  • Variables:
Variable Allowed values Default
Amount CHF 50 to 1'000, steps of 50 CHF 300
Duration 1 to 12 months 6 months
Installments 1 to 12, monthly monthly, equal
Support group none · 3 to 5 named persons none
Thank-you gesture none · meal · symbolic service none

Why these locks: inside a family, interest and improvised escalation are the two known relationship-killers; the package removes both from the menu.

Package 2: Neighbour loan with pledge

Intended users: neighbours and acquaintances who trust each other some, but not blindly. Validation status: draft.

  • Fixed parameters: pledge clause with condition and value recorded at handover (S6, Annex 3) · receipt confirmation at handover (S1) · release of the pledge automatic at full repayment.
  • Variables:
Variable Allowed values Default
Amount CHF 50 to 500, steps of 25 CHF 150
Duration 2 weeks to 6 months 2 months
Pledge type object held by lender · object reserved · service commitment object reserved
Pledge description free text plus agreed value, capped at 2x the amount required

Why these locks: between neighbours the pledge replaces intimacy; recording its condition and value at handover prevents the second dispute ("that bike was worth more") from ever starting.

Package 3: Support group loan, microcredit style

Intended users: friend circles, associations, diaspora and village networks; larger amounts carried by collective trust. Validation status: draft.

  • Fixed parameters: mutual support group of 3 to 5 named members, each acknowledging Annex 2 (S4) · group intervention only after day [15] of the ladder, always private · no guarantor and no pledge (the group is the mechanism).
  • Variables:
Variable Allowed values Default
Amount CHF 200 to 2'000, steps of 100 CHF 500
Duration 3 to 18 months 10 months
Group size 3 · 4 · 5 5
Group role remind only · remind and mediate remind and mediate

Why these locks: the package borrows what makes microcredit groups work: the borrower answers to a chosen circle, and no single person carries the awkwardness of reminding.

What no package allows

  • Interest of any kind: a loan needing interest belongs in another market.
  • Public shaming steps, whatever the delay.
  • Guarantees or pledges above the caps stated in each package: beyond them, use the full contract model with individual legal advice.

See also