WEAR RATE. The attrition rate rose again in all categories, the Banque de France announced. Good news ? Not so sure.
[Mis à jour le 3 mars 2023 à 15h28] A rise, again and again. On June 1, 2023, the Banque de France raised the ceiling on usury rates, in particular those for mortgages. This also applies to consumer loans. A double-edged sword: on the one hand, this will allow more individuals to take out a loan from their bank in order to finalize the purchase of a residence or any other process requiring a cash advance from the bank . On the other hand, with this increase in usury rates, the cost of these loans will increase further. Indeed, to ensure the payment of larger or longer maturities, banks increase their interest rates. Enough to revise certain projects downwards on the borrower side.
The rate of wear is the maximum legal rate at which a credit can be contracted. Above all, it protects a borrower against excessive rates that may be offered to him by various credit institutions. In other words, it makes it possible to avoid situations of over-indebtedness serious for an individual, and on a larger scale, the destabilization of the global economy. It therefore plays a regulatory role. It applies to home loans as well as consumer loans, account overdrafts, or revolving loans.
| Cash loans to households and loans for works of an amount less than or equal to 75,000 euros | Rate as of June 1 |
| Loans of an amount less than or equal to 3,000 euros | 21.24% |
| Loans of an amount greater than 3,000 euros and less than or equal to 6,000 euros | 11.37% |
| Loans over 6,000 euros | 6.55% |
| Real estate loans and loans for work in excess of €75,000 (2) | |
| Fixed rate loans with a term of less than 10 years | 3.99% |
| Fixed rate loans with a term between 10 years and less than 20 years | 4.45% |
| Fixed rate loans with a term of 20 years and more | 4.68% |
| Variable rate loans | 4.47% |
| Bridging loans | 4.67% |
It is the Banque de France which sets the rate of wear. It is based on the average effective rates charged by credit institutions increased by a third. The thresholds vary according to the amount borrowed, the duration of the loan and the category of loan chosen (Consumer credit or revolving credit for example).