French Bank Loans

The Cabinet International, on behalf of their clients, represent the Banque Entenial

When buying a property in France, citizens of the United Kingdom, or any other 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 3.30 per cent.

The Loan and Interest is normally repaid in equal monthly instalments over periods,
to be decided by the client, ranging from 5 to 20 years. As in the following examples:

Taking the Purchase Price of a property as €76, 224 or (500,000 Frs), and the maximum loan of 70% of €53,357 or (350,000 Frs), the equal monthly repayments – for the elected period of payment – and including Life Insurance, would amount to :

10 years : €535.97 or 3,515.73 Frs
12 years : €462.55 or 3,034.13 Frs
15 years : €389.06 or 2,552.07 Frs
20 years : €217.31 or 2,081.42 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 : €803.96 or 5,273.63 Frs
12 years : €693.83 or 4,551.23 Frs
15 years : €584.26 or 3,832.49 Frs
20 years : €475.97 or 3,122.16 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.

Had the increase in the Bank Rate warranted a greater increase of the monthly repayment, the surplus would be converted to a measure of time and added to the period of which the loan should be repaid.

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

Article dated 16th January 2003

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