diff --git a/oarepo_c4gh/key/c4gh.py b/oarepo_c4gh/key/c4gh.py
index 059a10b..e7cadf7 100644
--- a/oarepo_c4gh/key/c4gh.py
+++ b/oarepo_c4gh/key/c4gh.py
@@ -6,15 +6,34 @@
 from io import RawIOBase, BytesIO
 from typing import Self
 from base64 import b64decode
+from cryptography.hazmat.primitives.ciphers.aead import ChaCha20Poly1305
 
+# 7 bytes magic word that is at the very beginning of any private key
+C4GH_MAGIC_WORD = b"c4gh-v1"
 
-def default_passphrase_callback():
+# Supported KDFs of Crypt4GH
+C4GH_KDFS = b"scrypt" b"bcrypt" b"pbkdf2_hmac_sha256"
+
+
+def check_c4gh_kdf(kdf_name: bytes) -> bool:
+    """Returns true if given KDF is supported.
+
+    Parameters:
+        kdf_name: KDF name string as bytes
+
+    Returns:
+        True if the KDF is supported.
+    """
+    return kdf_name in C4GH_KDFS
+
+
+def default_passphrase_callback() -> None:
     """By default the constructor has no means of obtaining the
     passphrase and therefore this function unconditionally raises an
     exception when called.
 
     """
-    raise ArgumentError("No password callback provided!")
+    raise ValueError("No password callback provided!")
 
 
 def decode_b64_envelope(istream: RawIOBase) -> (bytes, bytes):
@@ -51,6 +70,120 @@ def decode_b64_envelope(istream: RawIOBase) -> (bytes, bytes):
     return begin_label, data
 
 
+def decode_c4gh_bytes(istream: RawIOBase) -> bytes:
+    """Decodes binary string encoded as two-byte big-endian integer
+    length and the actual data that follows this length field.
+
+    Parameters:
+        istream: input stream from which to decode the bytes string.
+
+    Returns:
+        The decoded bytes string.
+
+    Raises:
+        ValueError: if there is not enough data in the stream
+
+    """
+    lengthb = istream.read(2)
+    lengthb_length = len(lengthb)
+    if len(lengthb) != 2:
+        raise ValueError(
+            f"Binary string read - not enought data to read the length: "
+            f"{lengthb_length} != 2"
+        )
+    length = int.from_bytes(lengthb, byteorder="big")
+    string = istream.read(length)
+    read_length = len(string)
+    if read_length != length:
+        raise ValueError(
+            f"Binary string read - not enough data: {read_length} != {length}"
+        )
+    return string
+
+
+def check_c4gh_stream_magic(istreamb: RawIOBase) -> None:
+    """Reads enough bytes from given input stream and checks whether
+    they contain the correct Crypt4GH signature. Raises error if it
+    doesn't.
+
+    Parameters:
+        istreamb: input stream with the raw Crypt4GH binary key stream.
+
+    Raises:
+        ValueError: if the signature does not match.
+
+    """
+    magic_to_check = istreamb.read(len(C4GH_MAGIC_WORD))
+    if magic_to_check != C4GH_MAGIC_WORD:
+        raise ValueError("Not a Crypt4GH private key!")
+
+
+def parse_c4gh_kdf_options(istreamb: RawIOBase) -> (bytes, int, bytes):
+    """Parses KDF name and options (if applicable) from given input
+    stream.
+
+    Parameters:
+        istreamb: input stream with the raw Crypt4GH binary stream.
+
+    Returns:
+        kdf_name: the name of the KDF as binary string
+        kdf_rounds: number of hashing rounds for KDF
+        kdf_salt: salt for initializing the hashing
+
+    Raises:
+        ValueError: if parsed KDF name is not supported
+
+    """
+    kdf_name = decode_c4gh_bytes(istreamb)
+    if kdf_name == b"none":
+        return (kdf_name, None, None)
+    elif check_c4gh_kdf(kdf_name):
+        kdf_options = decode_c4gh_bytes(istreamb)
+        kdf_rounds = int.from_bytes(kdf_options[:4], byteorder="big")
+        kdf_salt = kdf_options[4:]
+        return (kdf_name, kdf_rounds, kdf_salt)
+    else:
+        raise ValueError(f"Unsupported KDF {kdf_name}")
+
+
+def derive_c4gh_key(
+    algo: bytes, passphrase: bytes, salt: bytes, rounds: int
+) -> bytes:
+    """Derives the symmetric key for decrypting the private key.
+
+    Parameters:
+        algo: the algorithm for key derivation
+        passphrase: the passphrase from which to derive the key
+        rounds: number of hashing rounds
+
+    Returns:
+        The derived symmetric key.
+
+    Raises:
+        ValueError if given KDF algorithm is not supported (should not happen
+        as this is expected to be called after parse_c4gh_kdf_options).
+    """
+    if algo == b"scrypt":
+        from hashlib import scrypt
+
+        return scrypt(passphrase, salt=salt, n=1 << 14, r=8, p=1, dklen=32)
+    if algo == b"bcrypt":
+        import bcrypt
+
+        return bcrypt.kdf(
+            passphrase,
+            salt=salt,
+            desired_key_bytes=32,
+            rounds=rounds,
+            ignore_few_rounds=True,
+        )
+    if algo == b"pbkdf2_hmac_sha256":
+        from hashlib import pbkdf2_hmac
+
+        return pbkdf2_hmac("sha256", passphrase, salt, rounds, dklen=32)
+    raise ValueError(f"Unsupported KDF: {algo}")
+
+
 class C4GHKey(SoftwareKey):
     """This class implements the loader for Crypt4GH key file format."""
 
@@ -124,4 +257,25 @@ def from_stream(
         if slabel == b"CRYPT4GH PUBLIC KEY":
             return C4GHKey(sdata, True)
         else:
-            raise ArgumentError("Private C4GH Key not implemented!")
+            istreamb = BytesIO(sdata)
+            check_c4gh_stream_magic(istreamb)
+            kdf_name, kdf_rounds, kdf_salt = parse_c4gh_kdf_options(istreamb)
+            cipher_name = decode_c4gh_bytes(istreamb)
+            if cipher_name == b"none":
+                secret_data = decode_c4gh_bytes(istreamb)
+                return C4GHKey(secret_data, False)
+            if cipher_name != b"chacha20_poly1305":
+                raise ValueError(f"Unsupported cipher: {cipher_name}")
+            assert callable(
+                callback
+            ), "Invalid passphrase callback (non-callable)"
+            passphrase = callback().encode()
+            symmetric_key = derive_c4gh_key(
+                kdf_name, passphrase, kdf_salt, kdf_rounds
+            )
+            nonce_and_encrypted_data = decode_c4gh_bytes(istreamb)
+            nonce = nonce_and_encrypted_data[:12]
+            encrypted_data = nonce_and_encrypted_data[12:]
+            return ChaCha20Poly1305(symmetric_key).decrypt(
+                nonce, encrypted_data, None
+            )
diff --git a/pyproject.toml b/pyproject.toml
index 1475972..87e5989 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -13,8 +13,9 @@ classifiers = [
   "Operating System :: OS Independent"
 ]
 dependencies = [
-    "mkdocs-material",
-    "pynacl>=1.5.0"
+    "pynacl>=1.5.0",
+    "bcrypt",
+    "cryptography"
 ]
 
 [tool.setuptools]
@@ -26,5 +27,6 @@ Issues = "https://github.com/oarepo/oarepo-c4gh/issues"
 
 [project.optional-dependencies]
 dev = [
-    "mkdocstrings[python]>=0.18"
+    "mkdocstrings[python]>=0.18",
+    "mkdocs-material"
 ]
diff --git a/tests/test_c4gh.py b/tests/test_c4gh.py
index dcce0d3..16af533 100644
--- a/tests/test_c4gh.py
+++ b/tests/test_c4gh.py
@@ -9,6 +9,15 @@
     b"-----END CRYPT4GH PUBLIC KEY-----\n"
 
 
+alice_sec_bstr = \
+    b"-----BEGIN ENCRYPTED PRIVATE KEY-----\n" \
+    b"YzRnaC12MQAGYmNyeXB0ABQAAABk8Kn90WJVzJBevxN4980aWwARY2hhY2hhMjBfcG9seTEzMDUAPBdXfpV1zOcMg5EJRlGNpKZXT4PXM2iraMGCyomRQqWaH5iBGmJXU/JROPsyoX5nqmNo8oxANvgDi1hqZQ==\n" \
+    b"-----END ENCRYPTED PRIVATE KEY-----"
+
+
+alice_sec_password = "alice"
+
+
 class TestC4GHKeyImplementation(unittest.TestCase):
     def test_b64_decoder(self):
         alabel, adata = decode_b64_envelope(io.BytesIO(alice_pub_bstr))
@@ -17,6 +26,9 @@ def test_b64_decoder(self):
     def test_public_loader(self):
         akey = C4GHKey.from_bytes(alice_pub_bstr)
 
+    def test_secret_loader(self):
+        akey = C4GHKey.from_bytes(alice_sec_bstr, lambda: alice_sec_password)
+
 
 if __name__ == '__main__':
     unittest.main()