By Raphaël MORENON
3 August 2025
The total effective interest rate (TEG), replaced for some loans by the annual percentage rate (TAEG), represents much more than a simple percentage in a loan contract. It expresses in figures the total and real cost of the loan to the borrower. Its determination, which is governed by strict legal and mathematical rules, is an essential element of transparency in the relationship between the lender and its customer. An error in its calculation can have major financial consequences and justify legal action. Understanding its composition and calculation methods is therefore a fundamental step for any borrower wishing to make a commitment in full knowledge of the facts, a central aspect of the regulation of usury under French law: full guide. Assessing the usurious rate: general principles Usury, i.e. lending money at an excessively high rate of interest, is a regulated practice designed to protect borrowers. The assessment...
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