By Charlotte GAUCHON
17 June 2025
Variable-rate loans and foreign currency loans are often appealing because of their attractive initial terms. However, these financial instruments conceal complexities and risks that can turn a financing project into a financial trap. Their structure, which indexes the cost of borrowing to external and unpredictable factors such as market rates or currency parities, exposes the borrower to variations that can have far-reaching consequences. The lender's remuneration, which appears advantageous at the outset, can change unfavourably. Understanding the mechanisms involved in these loans, the extent of legal protection and possible remedies is therefore essential for any borrower, whether an individual or a company director. The aim of this article is to demystify these products and give you the keys to assessing how dangerous they are. For a broader overview of the components of the cost of credit, you can consult our guide...
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