The APR alone is not enough to distinguish between two personal loan offers. Two proposals displaying the same annual percentage rate can differ in actual cost depending on the repayment strategy, modularity clauses, and the handling of additional fees. Comparing credit offers requires breaking down each line of cost, not just the nominal rate.
Cost of early repayment in a personal loan: the overlooked criterion
Most comparisons are limited to the APR and monthly payments. They overlook early repayment, which alters the total cost of credit once the borrower pays off their loan before the scheduled due date.
The reform applicable on November 20, 2026 changes the game. For the contracts concerned, early repayment will entitle borrowers to a proportional reduction in the total cost corresponding to the remaining duration. In practice, a borrower who repays midway will recover a significant portion of the accrued interest.
However, certain fees charged by third parties will not be refundable. Brokerage fees, in particular, may remain with the broker if they meet the regulatory conditions set by the new texts. Before signing, we recommend checking if the offer clearly distinguishes between brokerage fees and the cost of credit stricto sensu.
To compare a personal loan with Monsieur Crédit, this parameter must be integrated from the simulation phase, testing several scenarios of actual loan holding duration.
Expanded legal scope of consumer credit: check the level of protection
Not all personal loans will benefit from the same regulatory framework. Ordinance No. 2025-880 of September 3, 2025, expands the scope of consumer credit rules starting November 20, 2026. The following will fall within the scope:
- Loans of less than 200 euros, previously excluded, which must comply with pre-contractual information and creditworthiness verification obligations
- Some split or deferred payments, including payment facilities offered online, which will be subject to the same constraints as traditional loans
- Loans between 75,000 and 100,000 euros, previously outside the scope of consumer credit
To compare two personal loan offers, it will be necessary to verify that each falls under the same level of protection. An offer subject to the new rules will impose stricter creditworthiness checks and a standardized information sheet, making comparative reading easier. An offer that still escapes this framework may hide costs in less regulated clauses.
Breaking down the APR: personal loan and fees actually included
The APR remains the benchmark indicator for comparing consumer credit offers. However, we observe that its reliability depends on what each institution includes.
What the APR systematically includes
The nominal interest rate, application fees, and the cost of mandatory borrower insurance (when required) are included in the calculation. For a personal loan, insurance is generally not mandatory, but if the lender conditions it on obtaining the loan, it must be included in the APR.
What may remain outside the scope
Dedicated account maintenance fees, separately charged brokerage commissions, and penalties for late payment are not included. Therefore, two offers displaying the same APR can present a real cost difference if one charges for a dedicated account and the other does not.
We recommend always requesting the complete amortization schedule and calculating the total cost of credit in euros, including interest and additional fees. This amount in euros is more readable than a percentage for comparing offers with slightly different durations or amounts.
Modularity of monthly payments and deferral of due dates: comparing real flexibility
A personal loan taken out over several years may go through periods of budgetary tension. The ability to adjust monthly payments or defer a due date without excessive costs is a concrete comparison criterion.
- Increasing the payment allows for shortening the duration and reducing the total cost. Check if the lender imposes a cap on increases and a minimum period before the first adjustment
- Decreasing the payment extends the loan duration and increases the final cost. Some contracts limit the number of decreases over the total duration
- Deferring payments (partial or total) generates interim interest. A total deferral, where neither the principal nor the interest is collected, costs significantly more than a partial deferral limited to the principal
A contract that allows two deferrals and one adjustment per year without fees offers real flexibility. A contract without any modularity clause locks you into a rigid schedule, even if its APR is slightly lower.
Borrower insurance on a personal loan: delegation and savings
On a mortgage, delegating insurance is a reflex. On a personal loan, it remains underutilized. The insurance offered by the lending institution is not always the cheapest, and the law allows the borrower to take out external coverage with equivalent guarantees.
The cost of insurance can represent a significant portion of the total cost of credit, especially over long durations. Comparing loan offers without comparing the associated insurances means ignoring a variable that impacts each monthly payment.
Check three points: the calculation method (on the initial capital or on the remaining capital), the exclusions of coverage, and the possibility of canceling during the contract. Insurance calculated on the remaining capital decreases progressively, which reduces the overall cost compared to a fixed premium.
Choosing a personal loan is not just about ranking by APR. Integrating the cost of early repayment, contractual flexibility, and the applicable regulatory scope allows you to identify the truly cheapest offer over the entire duration of the loan.
