APRC
Annual Percentage Rate of Charge: the legal indicator aggregating the nominal rate, mandatory insurance, arrangement and guarantee fees and all related costs. Expressed as an annual percentage, it lets offers be compared on a like-for-like basis and must never exceed the usury rate. It is the only true arbiter of a loan's cost.
Key points
- The APRC aggregates the nominal rate, mandatory insurance, arrangement and guarantee fees.
- Expressed as an annual percentage, it lets two offers be compared on a like-for-like basis.
- It can never exceed the usury rate published by the Banque de France.
- It is the reference indicator of a loan’s real cost, not the nominal rate.
Frequently asked questions
How is the APRC calculated?
The APRC starts from the nominal rate then adds every charge required to obtain the loan: mandatory borrower insurance, arrangement fees, guarantee cost and ancillary fees. The total is converted into an annual percentage using a legal formula, which allows a direct comparison between lenders.
What is the difference between APRC and nominal rate?
The nominal rate only serves to compute interest; it is the figure highlighted in advertising. The APRC, by contrast, includes insurance and fees, and therefore reflects the real cost. Two offers at the same nominal rate can show very different APRCs once insurance is factored in.
Why compare offers by APRC rather than the advertised rate?
Because a bank can advertise a low nominal rate while imposing a costly group insurance or high fees. On a long loan, insurance can be over a third of the cost; only the APRC reveals these gaps. It is the reflex a broker systematically passes on to the client.
In practice
On a €250,000 loan over 20 years, switching from a 0.34% group insurance to a 0.10% delegation can lower the APRC by several tenths of a point and save over €10,000 across the term, at an identical nominal rate.
Official sources
- What is the annual percentage rate (TAEG)? · Service-Public.gouv.fr
- Credit: the annual percentage rate (TAEG) · economie.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr