Subsection 2: Usury rates

A usurious loan is any conventional loan granted at an overall effective rate that exceeds, at the time it is granted, by more than one third, the average effective rate charged during the previous quarter by credit institutions and finance companies for transactions of the same nature involving similar risks, as defined by the administrative authority after consulting the Comité Consultatif du Secteur Financier. The categories of transactions for loans…

The conditions for calculating and publicising the average effective rates mentioned in article L. 314-6 are set by decree.

Transitional measures, derogating from the provisions of article L. 314-6, may be implemented by the Minister for the Economy, on a reasoned proposal from the Governor of the Banque de France, for a period that may not exceed eight consecutive quarters, in the event of:-an exceptionally large change in the cost of resources of credit institutions and finance companies;-modifications to the definition of transactions of the same nature mentioned in…

The provisions of articles L. 314-6 to L. 314-8 do not apply to loans granted to a natural person acting for professional purposes or to a legal entity engaged in an industrial, commercial, craft, agricultural or non-commercial professional activity. L. 314-6 to L. 314-8 do not apply to loans granted to a natural person acting for professional purposes or to a legal entity engaged in an industrial, commercial, craft, agricultural…