In France, one private individual may lend money to another on an occasional basis, provided the agreement is put in writing, the usury rate is respected and any loan above 5,000 € is declared on formulaire 2062.
Occasional lending tolerated, regular lending reserved for banks
Under French law, credit granted on a regular basis falls under the banking monopoly and belongs to institutions authorised by the ACPR. An individual may therefore help a relative now and then, but cannot repeatedly offer interest-bearing loans to the public.
The Civil Code as the basis of the loan contract
A money loan between two natural persons is a loan for consumption as defined by the Civil Code. Writing serves as proof: an IOU signed by the borrower or a two-sided contract, with the sum written in figures and in words.
Interest is optional but never above the usury threshold
Lending for free is allowed in France. If interest is agreed, it must be stated in writing and stay below the usury rate the Banque de France publishes every quarter for each credit category; exceeding it is a criminal offence.
Formulaire 2062: who files it and from what amount
When the amount lent exceeds 5,000 €, the borrower files formulaire 2062 (the French tax form for declaring loans) with the income tax return. The lender separately declares the interest received. Details are on our page about taxation of private loans.
Optional registration and the role of a notaire
Registering the contract with the tax office costs a fixed duty of 125 € and gives the deed a certain date. A notarial deed goes further, as it can allow enforcement without first going before the tribunal judiciaire.
Crowdlending platforms under the European PSFP status
French platforms offering loans to businesses must be authorised by the AMF as crowdfunding service providers under the European crowdfunding regulation. Before sending any money, check the authorisation in the AMF or ORIAS register.
The FICP register and financially fragile borrowers
A listing in the FICP, the national register of credit repayment incidents kept by the Banque de France, lasts five years for a payment incident and up to seven under an over-indebtedness plan. Fraudsters target exactly these people with no-check finance.
Fake lenders: a trend monitored by the AMF and ACPR
French authorities regularly publish blacklists of websites and identities impersonating authorised firms. The classic pattern is an offer on social media, an official-looking contract, then processing, insurance or notary fees demanded before any money is released.
Where to report a dubious loan offer
Report a suspicious site or ad on PHAROS, and a misleading commercial practice on Signal Conso. After a transfer, file a complaint with the police or gendarmerie and alert your bank at once to try to recall the funds.
A family safeguard: loans between parents and children
Without anything in writing, the tax authorities can reclassify a loan as a gift, with duties to pay. An IOU and repayments visible on bank statements protect the borrower, as our guide to loans between friends and family explains.
Recovering an unpaid sum in France
If the borrower defaults, the lender first sends a formal notice by registered letter. Without an amicable settlement or conciliation, the lender can go to the tribunal judiciaire, then ask a commissaire de justice to enforce the judgment through seizures.
Comparing with rules in other French-speaking countries
Obligations vary widely from one country to another: in Belgium, the FSMA supervises platforms and the tax rules differ. Our overview of peer-to-peer loans by country helps you avoid wrongly applying French law elsewhere.
Setting up a private loan that complies with French law
- Draft an IOU or loan contract stating the amount, term, any interest rate and schedule, signed and dated by both parties.
- Check that the agreed rate stays below the quarterly usury threshold published by the Banque de France for a comparable credit category.
- Pay the money by bank transfer from an account in the lender's name to an account in the borrower's name.
- If the loan exceeds 5,000 €, the borrower attaches formulaire 2062 to the income tax return for the year of payment.
- Consider registering the contract with the tax office for the fixed duty of 125 €, or a notarial deed for added security.
- Keep proof of every monthly repayment and confirm the outstanding capital in writing on each anniversary date.
Budget for a private loan in France
| Item | Amount in euros | Note |
|---|---|---|
| Agreed interest | Free, from 0 % up to the cap | Cap: quarterly usury rate of the Banque de France |
| Registering the contract | 125 € (indicative) | Fixed duty, optional step |
| Notarial deed | Varies with the deed | Ask the notaire for a quote |
| Tax on interest | Depends on the tax situation | Investment income declared by the lender |
| Fees demanded by a fake lender | Total loss | No legitimate lender charges fees before paying out |
Standard file for a private loan in France
- Valid identity document for each party
- Recent proof of address
- Signed loan contract or IOU
- Bank details for both accounts used
- Formulaire 2062 if the amount exceeds 5,000 €
- Repayment schedule attached to the contract
- Proof of the initial transfer
Costly mistakes made by borrowers in France
- Paying processing or insurance fees to a stranger before receiving the funds: the typical method of a fake loan scam.
- Trusting an offer posted on Facebook or a messaging group by a so-called lender promising to fund people listed in the FICP.
- Sending money to a supposed notaire contacted by email, when a real notarial office can be checked with the chambre des notaires.
- Agreeing to pay in cryptocurrency or prepaid cards, irreversible methods that fraudsters favour so they can vanish.
- Handing a large sum to a relative with nothing in writing, risking a dispute or tax reclassification as a gift.
Your questions on peer-to-peer lending in France
Must a 3,000 € family loan be declared?
No, the formulaire 2062 filing obligation covers loans above 5,000 €. Keeping a written record is still advisable, because it proves the money was a loan and not a gift in the event of a tax audit or an inheritance.
Can an individual advertise to lend money to strangers?
Regularly offering credit to the public falls under the banking monopoly, reserved for institutions authorised by the ACPR. An ad of this kind is a warning sign: it very often comes from a fraudster rather than a real lender.
How long does a listing in the FICP last?
A listing for a payment incident is kept for five years at most, and up to seven years for an over-indebtedness measure. Full repayment can lead to early removal; the Banque de France tells you your own status free of charge.
What can I do after paying fees to a fake French lender?
Contact your bank without delay to ask for the transfer to be recalled, gather all the exchanges and file a complaint. Also report the profile or site on PHAROS, and beware of the fund recovery offers that often follow.