A loan is a contract by which a financial institution makes a sum available to a borrower, who commits to repay it according to a defined schedule, plus interest. This seemingly simple mechanism encompasses very different products, the legal framework of which is evolving rapidly, particularly since the recent reforms in consumer credit.
Consumer credit reform: what changes concretely from November 2026
Competitors present catalogs of financing solutions without mentioning the ongoing regulatory upheaval. However, the scope of consumer credit will significantly broaden.
Starting from November 20, 2026, installment payments and deferred payments of less than three months will fall under the full regime of consumer credit. The “3x without fees” offered at checkout or online will no longer be just a commercial service, but a credit product subject to enhanced information obligations and creditworthiness checks.
The reform also includes mini-loans of less than 200 euros, interest-free loans, leases with an option to purchase (LOA), and loans ranging from 75,000 to 100,000 euros. For borrowers, this means more protection, but also potentially longer processing times and more frequent refusals when repayment capacity is not demonstrated.
To delve deeper into the various available options, a structured comparison of each type of credit at Banque et Finance helps to better position the offers against this new regulatory framework.
Personal loan or earmarked credit: choose according to the nature of the project
Understanding the distinction between these two categories helps avoid subscribing to an unsuitable product, which can be costly in terms of flexibility or rates.
The personal loan, a flexible envelope
The personal loan provides a sum that the borrower can use as they wish, without needing to justify the expense. This freedom comes at a price: the interest rate is generally higher than that of earmarked credit, because the lender cannot reclaim a specific asset in case of default.
This type of financing is suitable for projects that are difficult to quantify in advance (moving, family events) or for multiple expenses consolidated into a single monthly payment.
Earmarked credit, linked to a specific purchase
Earmarked credit finances a specific good or service: vehicle, renovation work, equipment. The contract specifies the object of the financing, and if the sale is canceled, the credit is also canceled. This additional protection for the borrower comes with the requirement to provide supporting documents (quotes, invoices).
- For energy renovation work, earmarked credit allows access to promotional rates negotiated between the lender and the network of partner craftsmen.
- For a car purchase, it secures the borrower: if the dealer does not deliver the vehicle, the credit contract is automatically resolved.
- For a project with an unclear scope (gradual adaptation of a home, for example), the personal loan remains more suitable despite a higher cost.
Repayment capacity and over-indebtedness: the criterion that simulators do not display
Online simulators calculate a monthly payment, rarely the actual sustainability of that payment within a budget. The recent rise in over-indebtedness situations (applications filed have increased by about 10% in a year) shows that consumer credit remains the primary factor of financial fragility for households.
Before subscribing, the relevant calculation is not “how much can I borrow?” but “what monthly payment can I absorb without touching my emergency savings?”. The difference between these two questions often represents several thousand euros of difference in the borrowable amount.
Debt ratio and disposable income
The debt ratio (the ratio of credit charges to net income) is a common indicator, but it is not enough. Disposable income, that is, the amount available after paying all fixed charges, provides a more accurate picture of the actual margin for maneuver.
A household with modest income and a debt ratio of 25% may find itself in difficulty if its disposable income does not cover current expenses. Conversely, a high-income household can bear a higher debt ratio without budgetary strain.
Financing file: the documents that speed up or block approval
The quality of the file determines both the speed of response and the rate obtained. An incomplete file prolongs processing by several weeks and can trigger a default refusal.
- The last three bank statements show the regularity of income and the absence of incidents (failed direct debits, recurring overdrafts). A single visible incident can be enough to degrade the proposed conditions.
- Income proof (pay slips, tax notices) must match the amounts declared in the application. A discrepancy, even minor, triggers additional verification.
- For earmarked credit, the quote or pro forma invoice must precisely mention the nature of the work or the financed good. A vague quote (“various works”) will be rejected by most organizations.
- A summary table of ongoing credits, even those soon to be settled, avoids unpleasant surprises when consulting the central file of consumer credits.
A complete file upon first submission significantly reduces the processing time. Organizations that announce an immediate principle response only provide a conditional agreement, with final validation depending on the compliance of the submitted documents.
The choice of credit is not limited to comparing displayed rates. The reform of November 2026 will reclassify payment practices that millions of consumers use without considering them as credit. Checking one’s actual repayment capacity and preparing a solid file remain the two levers that the borrower maintains control over, regardless of the product chosen.
