WEAR RATE. The attrition rate rose again in all categories, the Banque de France announced. Good news ? Not so sure.
[Updated Mar 3, 2023 3:28 PM] Rising, again and again. On June 1, 2023, the Banque de France raised the ceiling on usury rates, in particular those for mortgages. This also applies to consumer loans. A double-edged sword: on the one hand, this will allow more individuals to take out a loan from their bank in order to finalize the purchase of a residence or any other process requiring a cash advance from the bank . On the other hand, with this increase in usury rates, the cost of these loans will increase further. Indeed, to ensure the payment of larger or longer maturities, banks increase their interest rates. Enough to revise certain projects downwards on the borrower side.
The rate of wear is the maximum legal rate at which a credit can be contracted. Above all, it allows you to protect a borrower against excessive rates that may be offered to him by various credit institutions. In other words, it makes it possible to avoid situations of serious over-indebtedness for an individual, and on a larger scale, the destabilization of the global economy. It therefore plays a regulatory role. It applies to home loans, consumer loans, account overdrafts, or revolving loans.
It is the Banque de France which sets the rate of wear. It is based on the average effective rates applied by credit institutions increased by one third. The thresholds vary according to the amount borrowed, the duration of the loan and the category of loan chosen (consumer credit or revolving credit for example).
