The new wear rate ceilings

The opinion of 26 March 2026 sets the wear thresholds applicable from 1^er April. They take into account the average rates charged by credit institutions in the first quarter of 2026 for the various credit categories.

Usage rate is the maximum legal interest rate that credit institutions are allowed to charge when they grant you a loan. It is regulated by the Consumer Code and aims to protect borrowers. It is set by the Banque de France on the basis of the rates charged by the banks in the previous 3 months.

At 1^er april 2026, the maximum rate that can be granted by banks for a property purchase is set at:

• 4% for fixed-rate loans with a maturity of less than 10 years;
• 4.48% for fixed-rate loans with a maturity of between 10 years and less than 20 years;
• 5.19% for fixed-rate loans of 20 years or more;
• 5% for variable-rate loans;
• 6.2% for bridge loans.

There are different rates of wear and tear depending on the type of loan, its amount and its duration. It applies  to all credits contracted by individuals, associations, professionals and companies. 

Note that the annual percentage rate of interest (APR) is the “all-inclusive” interest rate of a credit. It includes the nominal interest rate (the rate used to calculate the interest on your loan) and the elements constituting a condition for obtaining the advertised credit:

• the application fee;
• fees paid or payable to intermediaries involved in any way in the granting of the loan (e.g. broker);
• compulsory insurance and guarantee costs.

If, at the time the loan is granted, the APR of the loan exceeds the rate of wear and tear, the loan is called usurious. It is forbidden to grant a loan at a usurious rate.