You have just taken out a home loan or a consumer loan. You have heard about usury without really knowing what it means. A few brief explanations are in order.
A protective measure
The usury rate is the maximum rate that credit institutions are allowed to charge on a loan. It also applies in case of account overdraft. It is established according to the components of a loan: Prime rate of the credit, file fees, costs of insurances and guarantees... Fixed by the Bank of France at the end of each quarter for the following quarter, this ceiling aims to avoid possible abuses. Interest rates that are too high can put the borrower in a delicate financial situation or deprive him/her of access to credit.
The way it is calculated
In fact, there is not one but several usury rates depending on the type of loan, its amount and its duration. In order to set the current usury rate, the Banque de France bases itself on the average credit rates charged by banking institutions. Inflation plays an important role in the calculation. In the current context where the loan rates go up by a mechanical and automatic effect, the usury rate increases in the same proportions.
Beware of penalties
A bank that charges an annual percentage rate of charge (APR) higher than the current usury rate is considered "usurious". It commits an offence punishable by 2 years of imprisonment and/or a fine of 300 000 € (article L341-50 of the Consumer Code).
| Usury rate applicable on July1st 2022 |
|
| For real estate loans of more than 75,000 €, the usury rate will be |
|
| Fixed rate loans with a term |
2,60 % |
| Fixed rate loans with a term of between 10 and 20 years |
2,60 % |
| Fixed rate loans with a term of 20 years or more |
2,57 % |
| Variable rate loans |
2,45 % |
| Bridge loans |
2,99 % |
| Usury rate and consumer loans |
|
| Loans up to €3,000 |
21,11 % |
| Loans over €3,000 and up to €6,000 |
9,87 % |
| Loans of more than € 6,000 |
4,93 % |
Marie-Christine Ménoire