The personal loan is in France a category of consumer credit whose characteristic is that it does not finance a specific purchase (unallocated loan). Like any consumer credit, it is subscribed by an individual for a period of between a few months or a few years (usually not more than 7 years) under which is made available to a natural person , after (in law) French) the statutory withdrawal period , a sum of money that will be reimbursed by periodic payments, usually monthly payments.
It is intended not to finance a specific purchase but to enable the borrower to meet all expenses relating to both unspecified consumer goods and services such as expenses resulting from family events, medical expenses, study fees, taxes, renovation costs, travel, etc. In pratric the funds are paid into the account of the borrower who disposes of it as he wishes.
Special or local aspects
The applied rate (APR in French law) for a personal loan is higher than an assigned loan obtained in a bank but lower than for a loan taken out at a point of sale (intended for the purchase of a good or a service, also known as “installment purchase financing” or “assigned loan”).
The rules of acceptance are stricter, the borrower having a priori not to justify the destination of funds.
Up to € 75,000 (in French law), this type of loan is subject to the code of consumption and allows in particular a prepayment without fees, unlike the mortgage (penalty of 3% maximum).
Like all loans intended (in French law) to individuals, it is subject to the non-exceeding of the rate of wear [ archive ] and whose threshold differs according to whether the amount is greater or less than 1 524 € .