A loan is a contract by which a financial institution makes a sum of money available to a borrower, who commits to repay it according to a defined schedule, plus interest. This simple mechanism covers very different realities depending on the type of loan, the amount, the duration, and the borrower’s profile.
Secured loan, personal loan, revolving credit: what each option concretely implies
Before comparing rates or offers, the first decision concerns the nature of the loan. Each category engages the borrower differently and offers distinct protections.
The secured loan finances a specific purchase (vehicle, appliances, renovations). If the sale is canceled, the loan is also canceled. This interdependence protects the buyer but limits the flexibility of fund usage.
The personal loan, on the other hand, is not tied to any asset. The borrower uses the sum freely. This freedom comes at a cost: in case of a problem with a purchase financed by a personal loan, repayment continues.
The revolving credit provides a reserve of money replenished over time through repayments. Its rate is generally the highest of the three options. It is suitable for occasional small expenses, but prolonged use significantly increases the total cost. To delve deeper into these distinctions, the credit guide on Aujourd’hui J’investis details each mechanism with numerical examples.
Split payment and mini-loans: the new regulations that change the game
The option to pay in three or four installments offered in e-commerce resembles a cash facility. Legally, it is considered a loan, and French regulations are catching up with this reality.
An ordinance dated September 3, 2025, and two decrees from February 19, 2026, and August 1, 2026, transpose the European directive (EU) 2023/2225 on consumer credit contracts. The implementation date is set for November 20, 2026.
These texts extend protective rules to products that were previously poorly regulated:
- Mini-loans of less than 200 euros, previously excluded from the regulatory scope, will have to comply with the same pre-contractual information obligations as traditional loans
- Loans of less than three months (split payment, deferred payment) and so-called “free” loans will be subject to the right of withdrawal and creditworthiness analysis
- The ceiling for consumer credit increases from 75,000 euros to 100,000 euros, broadening the scope of protection
Lenders will now have to precisely document the creditworthiness analysis of each borrower and direct those in difficulty towards independent support services. For consumers used to split payments without formalities, the change will be tangible by the end of 2026.
Debt ratio and borrowing capacity: the real thresholds to know
Borrowing capacity is not just a calculation of income minus expenses. The High Council for Financial Stability (HCSF) imposes a strict framework on banks that directly determines the amount an individual can borrow.
The maximum debt ratio is set at 35% of the borrower’s net income, including borrower insurance. This ceiling applies to all ongoing loans, not just the new loan. A borrower already repaying an auto loan sees their mortgage borrowing capacity reduced accordingly.
Banks have a margin of exception: they can grant up to 20% of their new mortgage loans by exceeding this threshold. This flexibility primarily targets the purchase of primary residences and first-time buyers.
The maximum duration of a mortgage is capped at 25 years (27 years for a purchase in VEFA or with renovations representing more than 25% of the total cost). Extending the duration reduces the monthly payment but increases the total cost of the loan, sometimes significantly.
Total cost of credit: the items we underestimate
The nominal rate displayed by the bank represents only a part of the actual cost. The APR (annual percentage rate) includes all mandatory fees, but some items deserve special attention.
The borrower insurance can represent a significant portion of the total cost of a mortgage. Since the Lemoine law, the borrower can change insurance at any time, without fees or penalties. Comparing delegated insurance offers (outside the bank) often helps reduce the overall bill.
The loan guarantee (mortgage, lender privilege, or guarantee by a specialized organization) incurs variable fees. The guarantee, when accepted by the bank, is generally cheaper than a mortgage and allows for partial repayment at the end of the loan.
Application fees, early repayment penalties, and brokerage fees add to the total amount. Comparing two loan offers based solely on the nominal rate leads to misjudgments: the APR remains the only reliable indicator for comparing offers with each other.
Outstanding credit in France: what the latest figures say
According to the French Banking Federation, outstanding consumer credit reaches 221 billion euros at the end of June 2026. The personal credit market is experiencing a moderate recovery after several quarters of slowdown.
This trend reflects a context of rates that are gradually stabilizing. For a borrower, the current period offers more visibility on the cost of a project than during a period of rapid rate increases. Comparing multiple offers, negotiating insurance, and checking the APR before signing remain the most concrete levers to reduce the cost of a loan.
