Official website of Notaires de France

Bank and loans guarantees


Banks offer various types of loan. The amount depends on the borrower’s resources (Neiertz Law).

  • Bank loans

    • Either fixed interest (definitively calculated for the entire length of the loan) or variable interest (indexed or dependent on inter-bank variations, capped or uncapped) may apply to the repayments.

    • No interest applies to certain “interest-free” loans. They are only available to low earners and there is a limit to the sum borrowed.

    • In general, repayment schedules include both capital and interest. These are instalment loans.

    • But there is also a loan based on a different system: the “bullet loan”. Throughout the loan you reimburse only the interest.

    • The capital therefore remains untouched until the end of the loan and when it reaches maturity you reimburse it in a single payment.

    • This system offers a significant tax advantage for people who pay high taxes. In order to pay off the capital, it is possible to open a savings account associated with an investment scheme combined with life insurance.

  • Bank guarantees

    • Banks that lend you money may require several types of guarantee :
      - This may be a joint and several guarantee, either from a specialist company or from a friend or relation who guarantees the reimbursement of the said loan.
      - However, the bank may also want to have property as collateral. It may be a lender's privilege, a mortgage or both.

    • Guarantees are taken out for the length of the loan plus one year. They then end automatically. If the loan is reimbursed before it reaches maturity (if the property is sold, for example), the entry on the mortgage registry is cancelled.

    • The notaire draws up an instrument releasing the mortgage. Mortgage costs (which vary according to the type of loan) have dropped considerably.