Loan agreement in France: Template, Key Clauses and Local Law (2026)

What a loan agreement is under French law A loan of money (pret d'argent, or in the Civil Code a pret de consommation) is a contract where a lender hands over a sum and the borrower agrees to repay the same amount, usually with interest. French law treats it in the Civil Code, with extra protective rules for consumer credit in the Consumer Code and a hard usury ceiling that applies across the board. ## What French law requires A written document is needed to prove any loan above 1,500 euros. Under Article 1359 of the Civil Code, a legal act concerning a sum above 1,500 euros must be proved in writing. For a loan this usually means a signed loan contract or an acknowledgement of debt (reconnaissance de dette) signed by the borrower. Under Article 1376, where only the borrower signs, the borrower must write the amount in both words and figures by hand. Below the threshold an oral loan can still be proved by other means, but a written document is always safer. The usury ceiling is a hard cap, reset every quarter. France sets a maximum lawful rate (taux de l'usure) by category of loan. The Banque de France calculates it from the average effective rates charged by banks in the previous quarter, increased by one third, and publishes new ceilings each quarter. The ceiling is expressed as a maximum annual percentage rate (TAEG) that includes fees and insurance, not just nominal interest. Lending above the ceiling in force for that category and quarter is usury, which is unlawful and can be a criminal offence. Always use the ceiling published for the relevant quarter and loan type, because the figures change. Private loans above 5,000 euros must be declared to the tax authority. A loan between private parties of more than 5,000 euros in a year must be declared to the tax administration using form number 2062 (declaration de contrat de pret), filed with the income tax return. If the borrower does not declare it, the lender should. Separately, registering a loan contract or acknowledgement of debt with the tax office is optional and carries a fixed fee; it is useful to give the document a certain date. Consumer credit is heavily regulated. When the loan is consumer credit, the Consumer Code imposes pre-contract information, a standard form, a 14-day withdrawal right and the usury ceiling for that category. A business that provides consumer credit needs the appropriate authorisation. Stamp and notary. An ordinary loan needs no notary and no stamp duty. Notarial form arises where the loan is secured by a mortgage (hypotheque) over real estate, which must be by notarial deed and published at the land registry. ## The clauses that differ under French law - Interest and usury: the all-in TAEG must stay at or below the quarterly usury ceiling for that loan category, or the rate is unlawful.

• Handwritten amount: an acknowledgement of debt signed only by the borrower needs the amount written out by hand in words and figures to have full proving force.
• Tax declaration: a private loan above 5,000 euros a year must be declared on form 2062.
• Withdrawal (consumer): a consumer loan must carry the 14-day withdrawal right.
• Security: a mortgage over real estate needs a notarial deed and land-registry publication. ## A usable template (adapt with advice) Replace every [bracketed] field. This is a skeleton, not legal advice. ``` LOAN AGREEMENT (CONTRAT DE PRET) 1. Parties: Lender [name, address]; Borrower [name, address].

2. Loan amount: The Lender lends EUR [amount in figures and in words] to the Borrower.
3. Payment: The amount is paid to account [IBAN] on [date].
4. Interest: [X] percent per year (TAEG including fees [and insurance]), at or below the usury ceiling for this loan category and quarter.
5. Repayment: [one sum on date / instalments of EUR X from date] until fully repaid.
6. Early repayment: The Borrower may repay early [without penalty].
7. Default: If a payment is [15] days late, [contractual default interest within the usury limit] applies and, after written notice, the whole balance may fall due.
8. Withdrawal (consumer loans only): The Borrower may withdraw within 14 days as required by the Consumer Code.
9. Security: [none / mortgage over [property] by separate notarial deed].
10. Tax: The parties will declare this loan on form 2062 if it exceeds EUR 5,000 in the year.
11. Governing law and forum: French law; the competent French court at [place]. Signed by both parties at [place] on [date], in [number] originals. [For a borrower-only acknowledgement of debt: the Borrower writes the amount by hand in words and figures above the signature.]

- **Clause 2 and the handwritten note**: for a loan above 1,500 euros you need written proof, and an acknowledgement of debt signed only by the borrower needs the amount in the borrower's own hand to carry full weight.
- **Clause 10 (tax declaration)**: a private loan above 5,000 euros in a year must be declared on form 2062; this is often missed between family or friends.
- **Clause 9 (security)**: a mortgage over real estate is a notarial act that must be published. Writing it into the loan alone does not create it. ## Red flags - Setting a rate (all-in TAEG) above the quarterly usury ceiling, which is unlawful and can be criminal.
- A loan above 1,500 euros with no written document, leaving proof to argument.
- An acknowledgement of debt without the handwritten amount, weakening its proving force.
- A private loan above 5,000 euros not declared on form 2062.
- A consumer loan without the pre-contract information and 14-day withdrawal right.
- Assuming a mortgage exists without the notarial deed and land-registry publication. ## One workspace for the loan and its whole life A loan is a long run of dates and limits. Instalments fall due, the usury ceiling that bounds your rate is reset every quarter, a consumer withdrawal period runs, a tax declaration falls due, a mortgage has to be released on final repayment. The agreement is signed and then the schedule runs quietly until a payment is missed, a rate is questioned against the current usury ceiling, or a missed form 2062 surfaces, and everyone starts hunting for the clause and the right figure. An AI contract workspace is built to hold that whole life in one place: draft the agreement, read the interest, default and withdrawal terms back in plain language, track every due date and quarterly reset as a live alert, and keep each version tied to the borrower and the right people. [Adira](https://adiralaw.com) is built around Indian corporate law first, and depth for French usury and consumer credit rules is on its roadmap rather than live today, so a French loan still needs French counsel and a check against the current usury ceiling. The idea to keep is simple: the loan document and the schedule it creates belong together, not in a drawer and a spreadsheet. This guide is general information, not legal advice. Confirm the current usury ceiling and tax rules with a French lawyer or your tax office before you lend.