An online loan between individuals is legal in France if it stays occasional or goes through an authorised platform, yet most offers published on the internet are advance-fee scams that you must learn to spot before paying anything.
What online person-to-person credit really covers
Online, three realities get mixed up: a relative who lends after a chat on a messaging app, a regulated crowdfunding platform, and ads from so-called private lenders. Only the first two offer a legal framework you can actually verify.
The banking monopoly limits regular lenders
In France, granting credit on a regular basis is reserved for authorised banks and finance companies. An individual posting loan offers online every week is therefore acting outside the law, which alone should raise your suspicions.
PSFP status and the 2020 European regulation
Since European regulation 2020/1503, crowdfunding platforms must be authorised by the AMF, the French markets regulator, as crowdfunding service providers (PSFP). This framework mainly covers funding for business projects, not consumer credit between households.
Checking a platform in the official registers
Before opening an account, search for the platform's exact name in the AMF list of PSFPs, the ORIAS register of intermediaries and the REGAFI register of the ACPR, the banking supervisor. Also consult the blacklists these authorities publish.
Fake sites that copy banks and platforms
Fraudsters clone a well-known bank's logo, invent an authorisation number and buy a domain name close to the real one. A flattering simulator and instant approval always come before a demand for fees. Our page on phishing by fake lenders describes these copies.
Messaging apps, social networks and fake testimonials
WhatsApp, Telegram and Facebook groups circulate screenshots of transfers and invented testimonials. A lender who contacts you first after a public comment follows a well-known script, detailed in our article on loan scams on social networks.
Electronic signature and proof of the agreement
An acknowledgement of debt can be signed electronically, provided a reliable signature service timestamps the document. The contract must state full identities, amount, rate, schedule and early repayment terms, then be kept by each party.
No cooling-off period between individuals
The fourteen-day withdrawal period in the French Consumer Code protects borrowers dealing with a professional lender. Between two individuals this regime does not apply: only the written clauses bind the parties, so plan an early exit clause.
Declaring the loan with formulaire 2062
In France, a loan between individuals above 5,000 euros must be declared by the borrower on formulaire 2062 (the French tax form for loans), and interest received is taxable for the lender. Details are on our page on taxation of private loans.
The usury rate, a useful benchmark online too
The Banque de France publishes usury thresholds every quarter by credit category. A rate agreed between individuals above these thresholds would expose the lender to prosecution, while a strikingly low rate offered by a stranger is often bait.
Traceable transfers and bank details
Funds should move by transfer between two accounts held in the signatories' names. A foreign IBAN or one belonging to an unrelated company, or a request for payment in PCS or Transcash vouchers or cryptocurrency, matches well-documented fraud schemes.
Reporting a fraudulent offer found online
Report a suspicious ad on PHAROS and Signal Conso, and the AMF also takes alerts about fake investment or credit sites. After a payment, file a complaint, possibly online through THESEE, and warn your bank immediately.
Steps for a safe loan arranged online
- Identify the lender: real name, address, connection to you; for a platform, check its PSFP authorisation with the AMF.
- Refuse any request for prior payment, whatever it is called: processing fees, insurance, notary or release tax.
- Draw up a loan contract or acknowledgement of debt, signed by hand or with a timestamped electronic signature.
- Receive the funds by transfer from an account in the lender's name and keep the transaction notice.
- Declare the loan on formulaire 2062 with your income tax return if the amount exceeds 5,000 euros.
- Set up a standing order for each instalment to keep an indisputable record of repayments.
What a loan agreed online costs
| Item | Amount or rule | Comment |
|---|---|---|
| Interest between individuals | Free below the usury rate | Thresholds published quarterly by the Banque de France |
| PSFP platform fees | Vary by platform (indicative) | Fee schedule must be disclosed before commitment |
| Electronic signature | Free to a few euros (indicative) | Depends on the service used |
| Tax on interest | Taxable for the lender | Check the current rate with the tax office |
| Upfront fees demanded | Outright loss | Hallmark of a scam, to be reported |
Records to keep for a loan agreed at a distance
- Identity documents of both parties
- Signed contract and electronic signature certificate
- Bank details for the lender's and borrower's accounts
- Proof of the transfer of funds
- Dated repayment table
- Copy of the formulaire 2062 filed
- Screenshots of the online exchanges with the lender
Mistakes and clues that an online offer is fake
- Accepting a lender whose only contact details are a free email address and a foreign WhatsApp number.
- Sending a photo of your ID held next to your face, later reused to open accounts in your name.
- Paying a so-called notary, lawyer or bailiff in prepaid vouchers, gift cards or cryptocurrency to release the funds.
- Trusting an authorisation number shown on a website without finding it in the AMF, ORIAS or REGAFI registers.
- Receiving then returning a transfer sent by mistake at the lender's request, which makes you a money laundering intermediary.
Questions about peer-to-peer lending on the internet
Can you find a real private lender on a classifieds site?
It is very unlikely. An individual who lends repeatedly breaches the banking monopoly, and ads of this kind almost always serve to demand upfront fees. Real online loans come from an identified relative or an authorised platform.
Is a contract signed by email or e-signature valid?
Yes, a reliable electronic signature has the same evidential value as a handwritten one. A mere exchange of messages is weaker; a single complete document signed by both parties and kept in several copies is better.
Do French platforms lend to individuals for consumer spending?
The PSFP framework mainly covers funding for projects run by businesses. For a personal need, turn to a bank, an authorised credit institution or a family loan set out in writing.
How can I check that a credit website is authorised?
Search for the exact company name in the AMF, ORIAS and ACPR registers, then compare the website address with the one given by the authority. A site missing from these lists or appearing on a blacklist should be abandoned.