Guides & Learning
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.
Frequently Asked Questions
Who sets the taux d'usure in France?
The Banque de France publishes the maximum rates quarterly, the seuils d'usure, for each loan category. A lender in France may not legally offer a loan whose TAEG exceeds the published ceiling.
What does the taux d'usure include?
It caps the TAEG, which covers the nominal rate plus arrangement fees, insurance and guarantees. A loan can breach the ceiling even when its stated interest rate looks low, if the added costs push the TAEG above it.
Why can the taux d'usure block mortgage applications?
When market rates climb faster than the quarterly cap is updated, a lender's funding cost can exceed the ceiling, so it must refuse the loan rather than price above it. This is what made approvals scarce in France in 2023.
Does the taux d'usure cover all French credit?
It applies to consumer credit, mortgages, personal loans and overdrafts offered in France. Cross-border lending from another EU state may fall outside the French usury rules.