pret travaux

How does a business loan work?

Like most French, you find that your accommodation is in need of renovation or improvement. More and more of us are doing the work, expanding the house, redoing the facade, modernizing ourselves in terms of energy consumption standards, etc. These projects generally represent significant expenses, which require a bank loan. So, let’s see together how a business loan works.

business loan

Business loan is simply a Customized Personal Loan : The awarded amount can only be used to carry out the mentioned works. You can apply for it at a traditional banking institution, at a physical branch, or through a site like, which offers online credit.

The conventional loan is necessary Justify your ability to borrow in the banking institution. It will also be necessary to justify the use of capital by providing estimates and invoices for the work performed. Of course, you can get a personal loan that is not intended to finance your business, in order to get money quickly, without supporting documents. However, the annual percentage rate of consumer credit is much higher than the rate of restricted credit.

The business loan is limited to a maximum €75,000 Payment is made in monthly installments that can be extended More than 10 years. The average annual interest rate for a business loan is 2.5%. Depending on the terms of the credit, it can be up to 5%.

real estate mortgage

If the amount of work you wish to do exceeds €75,000, you cannot use the allotted loan. will pass through a Home loan with works. This should be done by licensed professionals.

You can thus include the work in the mortgage. You will only have one monthly payment to pay off, which can be spread over an extended period. This reduces the debt ratio. However, insurance premiums will be higher.

subsidized loans

The state set up several subsidized loans to encourage energy renewal work or facilitate access to real estate for the most humble families. Note that there are also many aids that can be combined to fund this energy renewal business.


An interest-free environmental loan, as its name suggests, is an interest-free loan that is issued for energy renewal business. The only condition that must be met is to contact RGE.

eco-PTZ allows financing for the following businesses:

  • Accurate renewal. Improving energy performance through thermal insulation works, installation of heating equipment, or hot water production using a renewable energy source. Maximum amount: 30 thousand euros.
  • Global renewal. Upgrade to achieve minimum power performance. Maximum amount: 50,000 euros.
  • rehabilitation work For non-collective sewage facilities. Maximum amount: 10,000 euros.


The Social Access Loan is granted to those with modest incomes. It relates to energy-saving work and expansionary work.

agreed loan

The approved loan allows the owner to carry on business in his main residence. Its interest rate is fixed and awarded without means testing.

home improvement loan

This loan is distributed by CAF, and this loan can be given to owners and tenants who are receiving a family allowance. It is used to finance renovation or thermal insulation work. The interest rate is 1%.

Leave a Comment

Your email address will not be published. Required fields are marked *