The regulatory framework for credit in France is about to undergo a major turning point. Ordinance No. 2025-880 of September 3, 2025, supplemented by several decrees published in 2026, reshapes the scope of consumer credit starting November 20, 2026. Mini-loans, installment payments, lease-to-own: products previously off the radar will now fall under legal obligations. This context changes the way a borrower must approach their search for financing.
Consumer credit reform: what changes on November 20, 2026
The reform significantly expands the scope of consumer credit. Mini-loans of less than 200 euros, free loans, certain installment payments of less than three months, and financing between 75,000 and 100,000 euros will now be subject to the same information and creditworthiness assessment obligations as traditional loans.
Home improvement loans up to 100,000 euros may fall under the consumer credit regime rather than real estate credit, provided that no real estate collateral secures the loan. This applies to maintenance, repair, or improvement work on a home.
The creditworthiness analysis required of the lender becomes more demanding. The assessment must be “thorough” and documented, based on income, expenses, and other relevant economic criteria. A legal duty of warning for the lender or intermediary is also established.
To better understand the mechanisms of credit before committing, the credit guide on Crédits et Placements details the different options available and their conditions.
Mortgage, personal loan, earmarked credit: choosing the right type of loan
The choice of loan type directly depends on the nature of the financed project, and confusing them can be costly in terms of rates or required guarantees.
The personal loan offers free use of funds, without proof of purchase. The law does not set a maximum duration. The rate is freely determined by the lender, within the limit of the usury rate published by the Banque de France.
Earmarked credit, on the other hand, finances a specific good or service. The main advantage: if the sale is canceled or if the good is not delivered, the credit can be contested. This legal link between the sales contract and the credit contract protects the borrower but limits flexibility of use.
Mortgage credit follows distinct rules. The High Council for Financial Stability (HCSF) maintains its regulatory standards, particularly regarding the maximum debt ratio of 35% of net income and the capped repayment duration. These constraints structure access to mortgage loans much more than the interest rate itself.
Particular case of home improvement loans after the reform
With the implementation of the reform, a home improvement loan of less than 100,000 euros without a mortgage will shift to the consumer credit regime. Protections will be strengthened (withdrawal period, pre-contractual information), but the applicable rate may differ from that of a traditional mortgage loan. Field feedback varies on this point: some brokers anticipate higher rates for these reclassified home improvement loans.
Interest rates and usury rates: benchmarks for comparing credit offers
Comparing credit offers without mastering the concept of APR is like comparing prices excluding tax and including tax without knowing it. The annual percentage rate (APR) includes the nominal rate, application fees, the cost of borrower insurance, and any mandatory guarantees.
The usury rate sets the legal ceiling beyond which an institution cannot lend. The Banque de France publishes it quarterly. A loan refusal may occur not because the borrower’s profile is risky, but because the sum of the nominal rate and ancillary fees exceeds this threshold.
- Check the APR and not just the nominal rate displayed in advertisements, as ancillary fees can represent a significant portion of the total cost
- Compare at least three offers from different banks or institutions, systematically requesting the standardized European information sheet (SEIS)
- Identify whether borrower insurance is imposed by the lender or if insurance delegation is possible, which can reduce the overall cost of credit
Over-indebtedness and repayment capacity: signals to watch before borrowing
Over-indebtedness is on the rise in France despite a long-term structural decline. This contrast illustrates that credit can remain sustainable at the macroeconomic level while becoming problematic at the individual level, especially in cases of cumulative debts or changes in professional situations.
Calculating one’s actual repayment capacity before any subscription remains the first reflex to adopt. The debt ratio is not sufficient: it is also necessary to consider the “remaining to live,” that is, the amount available after paying all fixed charges and loan installments.
- List all ongoing loans (including installment payments and revolving credit lines) to obtain a complete view of indebtedness
- Anticipate foreseeable income variations (end of fixed-term contracts, parental leave, retirement) in the calculation of the repayment burden
- Consult the Banque de France for free in case of difficulty, before the situation worsens
The November 2026 reform further strengthens the lender’s obligation to carefully assess creditworthiness. The duty of warning becomes a legal obligation, meaning that a borrower poorly informed of the risks can more easily engage the liability of the lending institution.
The credit landscape in France is transforming at an unprecedented pace. Between the expansion of the regulatory scope, the strengthening of creditworthiness obligations, and the rise in over-indebtedness situations, every borrower has an interest in precisely checking the conditions of their financing before signing a loan offer.
