Subsection 1: Overall effective rate

In all cases, for the purposes of determining the overall effective rate of the loan, as well as the effective rate taken as a reference, any direct or indirect charges, taxes, commissions or remuneration of any kind, borne by the borrower and known to the lender on the date of issue of the offer of credit or the amendment to the credit agreement, or the amount of which can be…

For credit agreements that provide for amortisation in instalments, the overall effective rate must be calculated taking into account the terms and conditions of the amortisation of the debt.

For credit agreements falling within the scope of chapitres II and III du présent titre, le taux effectif global est dénommé ” Taux annuel effectif global “.

A Conseil d’Etat decree specifies the conditions for application of articles L. 314-1 to L. 314-3 and in particular the methods for determining the basis of assessment and calculating the overall effective rate, as well as the methods for calculating the annual effective rate of insurance referred to in articles L. 312-7 and L. 313-8.

The overall effective rate determined in accordance with the procedures laid down in articles L. 314-1 to L. 314-4 is mentioned in any written document evidencing a loan agreement governed by this section.