Payday Loans in France, All You Need To Know:

Looking for a payday loan that’s best compatible with your needs? FUNDGECKO helps you get a 360-degree view of payday loans in France, including when to apply them, factors affecting this type of credit, and how they work. Read on to find out all you need to know about payday loans in France in minutes. 

The current market for payday loans

At FUNDGECKO, we avail the most recent and relevant news about consumer credits and how the news is supposed to inform your financial decisions as far as payday loans are concerned. Find out in a minute:

• The European Central Bank announced a 0.04% decrease in France’s bank lending rate in February 2022. This would have meant good to borrowers were it not for the Russia-Ukraine war that threatens to crumble down the global economy. The ECB stated that it would gradually increase the rates to cushion borrowers and companies from harsh economic times.

• France is just like any other country in the EU that’s feeling the heat of the Russia-Ukraine war due to high inflation of prices and disruption of supply chains. While France’s banking system survived through the COVID-19 pandemic, the Russian invasion seems to be taking a toll on the country’s financial markets.

• Nevertheless, the French government announced its plans to take serious steps to cushion its borrowers and businesses from the negative effects of the war, just like it did back then during the pandemic. Hence, France still proves to be a haven for taking out consumer credits.

 How to use FUNDGECKO to get payday loans

FUNDGECKO walks the user through the most critical steps of taking out a loan which is information. A loan is a financial decision that requires sobriety and enlightenment, which FUNDGECKO is here to provide. At our platform, you’re required to follow easy steps to get started with financing:

• Select the different loan offers that seem to address your needs and compare them in detail.
• Take a thorough read through their contract documents to fully understand how they work and outline any unique thing about them.
• Our FUNDGECKO team understands that you may develop some questions along the way. Feel free to send any queries and they will be addressed as soon as possible.
• Click on “Contract” to get to each bank’s website from where you can learn about the contract’s terms and conditions.

We give you a chance to air out your views and comments about our services. This goes a long way in helping other potential users build confidence in us.

How to apply for a payday loan?

While the process of applying for payday loans differs with entities, the basic process to take out a payday loan is the same. An entity may require the borrower to make the application in their offices while another may have them apply online. 

Below are the steps you’re likely to follow at any entity in France:

1. Select at least three entities that you’re attracted to and compare their services to end up with an option that’s most consistent with your needs. 
2. Select your preferred loan amount, purpose, and the repayment period. Be sure to fill out the application form with the most accurate personal data to reduce the chances of your application being discarded and submit it to the entity online or at their offices.
3. The entity sends pre-approval either after a few minutes in the online application or a few days after the physical application.
4. Be sure to have all the required documents and send them to the entity either through online platforms or by dropping them off at the lender’s offices.
5. Upon approval of your application, you’ll receive pre-contractual information which you’re required to go through, noting down all the conditions of the loan including the amount, term, interest rates, and any commissions and fees you’ll be charged in the future.
6. If you agree with everything about the loan, sign up for the contract either by digital signature or physically at the entity’s office.
7. Receive the funds either in minutes or after 48 hours.

Requirements for payday loans in France

Your main aim is to have the loan application approved. Meaning you’ll need to know all it takes to get there. While requirements to get payday loans in France vary with an entity, below are some of the most common requirements you’ll need to meet:

1. Age. The legal age for taking out a loan in France is 18. However, some entities still consider teens as minors and may only grant loans to applicants at 21-years-old and above.
2. French lenders will only grant loans to applicants with residence in the country, regardless of whether the applicant is an expat or a native.
3. Every entity will seek to assess the borrower’s ability to repay the loan they are asking for. Hence, having a stable source of income will be an advantage.
4. While there are no credit bureaus in France, the bank from which you take out a loan will rank you according to how you go about the repayment process. That will affect your future loan applications.

Loans come in handy to bail us out of poor financial situations. Hence, it’s advisable to take out a loan at a time when you can’t do without it.

Documentation for applying for a payday loan

Your lender will need proof that you meet all the outlined requirements. You’ll need to send all the required documents to prove that you’re a legal borrower, with French residence, French citizenship, and proof of payment, among others. 

• National ID card and any valid form of identity
• The last three pay statements to show your recent income
• Your latest tax assessment or self-tax assessment for the self-employed
• A proposal indicating the loan purpose and your project’s expenditure budget.
• Your partner will need to present the same documents in the case of a joint loan application

FAQ: Frequently Asked Questions

What is a payday loan?

A payday loan refers to an amount of money that we take out from a lender to refund it later after a specified period. The amount we return will be a total of the principal amount we borrowed plus the accrued interests as well as other fees and commissions.

By nature, payday loans are more expensive than other loan types because of their high interest rates, short repayment terms, and because their payments happen once. This type of credit is preferred because of its fast nature and is mostly used during financial emergencies. 

Why don’t you give me payday loans?

Many factors affect payday loans. Hence, failure to consider even one factor may have your application rejected. Such factors are your level of income, submitting the right documentation, your level of debt, etc. The lender will also reject your application if the information in the documents conflicts with what you filled out in the application form. 

What is the INE form for a loan?

This refers to a document that the lender is required to give to the loanee. The documents inscribe the entity’s terms and conditions for a consumer credit including the APR, interest rates, amount, commissions and fees, and any other charges that the consumer is likely to face in the future.

What is the binding offer of a payday credit?

When a borrower receives a binding offer from a bank, the bank allows them to compare other loan offers for 14 calendar days without losing the current loan the bank is offering us.

Can payday loans be paid in advance?

French law regulating consumer credits allows a borrower that’s willing to repay the loan in advance to do so either partially or in full. In either of the cases, the borrower will be required to pay the principal amount, the accrued interests, and any other fees or charges. Moreover, the borrower should notify the lender before making the payment. Depending on the lender, the borrower may be required to pay the early repayment fee.

What if I take out a loan online and then regret it?

Many times, credit consumers take out loans and then regret it because of finding other better options or for many other reasons. French law allows borrowers to drop the loan within the first 14 calendar days, beyond which they may face penalties.

What happens if I don’t pay back a payday loan?

Despite France’s lack of credit bureaus, borrowers’ behavior with consumer credits is always monitored by the lender. Hence, your failure to repay a loan will automatically affect your ability to access loans in the future.

When to Apply for a Payday Loan

Since the application happens online with most entities, payday loan consumers don’t mind shifting banks. You may opt for this type of credit if you don’t mind waiting and following the application process which might take a little longer than fast loans.

A payday loan is a good source of financing and can grant you a sizeable amount of money with a good comparison.

When to Apply for a Fast Loan

Fast loans come in handy when in need of a quick fix. Their fast nature helps borrowers get money in minutes. However, the loans are mostly small in size and have high interest rates. Their repayments are also short-termed.

Note: Fast loans can be abused because of their few eligibility criteria. Most fast loans are granted regardless of whether the applicant has other loans. Hence, borrow responsibly to avoid over-indebtedness.

About this page, our methodology

What is this page for: the main aim of this website is to help you end up with the best available financial product according to your needs. We, therefore, take time to provide you with the most updated information about the available credits in the market, equipping you with skills to compare them before signing up for an option. 

Source: Information about the regulations on online credit providers is sourced from Statista, and the French Law on Consumer credits, among other reliable sources. 

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About Us: FUNDGECKO is an online comparator website that specializes in personal finance and home economics products. Besides comparing the available options, we provide you with rich information that makes it easy for you to identify the most suitable option.

Note: There are no charges attached to any of our services, as FUNDGECKO obtains its income from advertising and its featured products.