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8. French Bank Loans

8.2. Rates and Charges on French Bank Loans

By the standards of many other countries the basic rates of interest are generally modest, starting from about 2.0% (2019).

However, you can expect to pay an administrative fee, called frais de dossier, but shop around as, in some cases, no fees are payable.

You may also be obliged to take out life insurance cover, which will be circa 0.5% of the loan. This condition is not always required, depending on your circumstances and size of the loan.

Do not accept the headline nominal rate of interest, as lenders are obliged to advise you of the real (APR) rate of interest (see the TEG, below), which includes the cost of the fees.

Accordingly, a low nominal rate with fees could actually be more advantageous than a high nominal rate with no fees.

Next: Types of Credit

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