Consumer credit is a credit agreement entered into with individuals, whether for commercial or professional purposes, to finance the purchase of consumer goods, such as computers, travel, automobiles, education or health.

Consumer credit includes:

• loans to individuals amounting to between EUR 200 and EUR 75,000;

• credit overruns, even if less than EUR 200;

• loans for works on real estate, without a mortgage guarantee or other right over immovable property, even if they amount to more than EUR 75,000.

The consumer credit scheme does not apply to loan agreements:

• guaranteed by mortgage on immovable property or other right over immovable property;

• whose purpose is to finance the acquisition or maintenance of property rights over existing or projected land or buildings;

• granted by pawnshops;

• that are leases and that do not provide for the right or obligation to purchase the leased asset;

• where the credit is granted free of interest and without any other charges;

• granted by the employer to its employees, without interest or with an annual percentage rate of charge lower than the rates practiced in the market.

Consumer credit can be made available in a traditional way, with an amount, term and type of reimbursement defined at the outset (such as a personal loan and car loan), or in the form of revolving credit, with a maximum credit limit defined and an indefinite term, as is the case, for example, of credit cards, credit lines and overdraft facilities.