Chapter IV: Provisions common to consumer credit and home loans

The calculation of the overall effective rate is based on the assumption that the credit agreement will remain valid for the agreed term and that the creditor and borrower will fulfil their obligations in accordance with the conditions and within the periods specified in the credit agreement. For credit agreements containing clauses which allow for adjustments to the interest rate and, where applicable, to the charges included in the overall…

For credit transactions intended to finance the needs of a professional activity or intended for legal persons governed by public law, the overall effective rate is an annual rate, proportional to the period rate, in arrears and expressed per hundred monetary units. The period rate and the duration of the period must be expressly communicated to the borrower.The period rate is calculated actuarially on the basis of a unit period…

For all credit transactions other than those mentioned in article R. 314-2, the annual percentage rate of charge referred to in article L. 314-3 is calculated in arrears, expressed per hundred monetary units, using the equivalence method defined by the formula appended to this code. The borrower must be expressly informed of the duration of the period. The annual percentage rate of charge is calculated actuarially and ensures, using the…

Included in the annual percentage rate of charge for the loan, where they are necessary to obtain the credit or to obtain it on the terms advertised, are in particular:1° Application fees;2° Fees paid or due to intermediaries involved in any way whatsoever in the granting of the loan, even if these fees, commissions or remuneration correspond to actual disbursements;3° Costs of insurance and compulsory guarantees ;4° The costs of…

The following are not included in the annual percentage rate of charge: 1° Costs relating to the acquisition of the properties mentioned in a of 1° of article L. 313-1 as well as the related taxes, notarial deed fees established pursuant to the section 3 of Chapter I of Title IV bis of Book IV of the Arrêtés part of the Code de commerce; 2° Costs payable by the borrower…

In the case of an advance made under a factoring contract, the overall effective rate is an annual rate, proportional to the period rate and expressed per hundred monetary units.The amount of the advance to be taken into consideration for calculating the overall effective rate is related, using the numbers method, to a period of one day.This rate is calculated according to the formula set out in the appendix to…

For an overdraft authorisation or overdraft facility, where the annual percentage rate of charge is calculated before they are used, the calculation is made using the method defined by the formula set out in the appendix to this code and referred to in article R. 314-3. After use of an overdraft authorisation, overdraft facility or overdraft, the annual percentage rate of charge is calculated by relating the amount of credit…

In the case of a discounting transaction, the period rate is defined as the ratio between the interest and miscellaneous costs payable by the borrower in respect of the discount and the amount of the discounted bill of exchange. The period is equal to the number of calendar days, from the negotiation date excluded up to and including the actual maturity date of the bill of exchange; this period may…

When the amount of the transactions mentioned in articles R. 314-7 and R. 314-8 is less than an amount set by order of the Minister for the Economy and Finance, a flat-rate minimum fee may be charged for each transaction, which is not taken into account when determining the overall effective rate; the borrower must be informed of this minimum fee.

Where the granting of a loan is subject to a prior savings phase, the overall effective rate is calculated without taking account of this savings phase.