Usury Rate (France)
Taux d'Usure in France: Mortgage and Loan Rate Caps Explained
The "taux d'usure" (usury rate) is a uniquely French consumer protection mechanism that caps the maximum interest rate lenders can charge.
The "taux d'usure" (usury rate) is a uniquely French consumer protection mechanism that caps the maximum interest rate lenders can charge.
What This Page Covers
The Banque de France publishes quarterly maximum rates (seuils d'usure) for different loan types. Lenders cannot offer loans exceeding these rates. This protects borrowers from predatory lending.
How It Applies
For a 20-year fixed mortgage in France, if the taux d'usure is 5.5%, no lender can charge more than 5.5% including all fees, insurance, and guarantees expressed as TAEG.
Details
When market rates rise quickly, the taux d'usure can "block" the mortgage market — lenders cannot offer rates above the cap even if their funding costs have risen. This happened in 2023 when many French borrowers were temporarily unable to get mortgages.
Context
The taux d'usure applies to all consumer credit in France: mortgages, personal loans, credit cards, and overdrafts. It is updated quarterly. Loans outside France (EU cross-border) may not be subject to French usury laws.