French Bank Loans

The Cabinet International represents, on behalf of their clients, the French bank Entennial

When buying a property in France, citizens of the United Kingdom, or of any country of the European Union, may apply for the loan of up to 70% of the purchase price, at the current annual Interest Rate of 3.90%.

The Loan and Interest is normally repaid in equal monthly installments over periods ranging from 5 to 15 years.

Taking the purchase price of a property as € 76,224 or (500,000 Frs)
and a 70% loan of € 53,357 or (350,000 Frs) the monthly payments - for the elected period of repayment - would amount to :

10 years : € 550.90 or (3,613.64) Frs
12 years : € 477.74 or (3,133.81) Frs
15 years : € 405.29 or (2,658.57) Frs

For a purchase price of € 114,337 (750,000 Frs), and a 70% loan of € 80,036 (525,000 Frs), the monthly payments - for the elected period of repayment - would amount to :

10 years : € 826.34 or (5,420.47 Frs)
12 years : € 716.62 or (4,700.74 Frs)
15 years : € 607.94 or (3,987.88 Frs)

An important security measure of a French bank loan is that an increase of the official Bank Rate, will not result in an unreasonable increase in the monthly loan repayments.

Should the French Bank Rate increase, during the period of the loan, the resulting increase in the monthly repayment of the loan would be restricted to 80% of the official French Rate of Inflation - as declared annually by I.N.S.E.E.

Should an increase in the French Bank Rate have warranted an increase of more than 80% of the monthly payment, the surplus would be converted to a measure of time, and added to the period over which the loan should be repaid.

The Cabinet International will, upon request, supply their clients with the necessary Loan Application forms, and assist with their completion.

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