France Loan Market 2028 By Size, Share, Trends, Growth, Forecast

Q: What is the interest rate in France?

In 2022, the interest rate in France will be 2.5 percent. Read More..

Summary

Report Description

Forecast Period	2024-2028
Market Size (2022)	USD1,826 Billion
CAGR (2023-2028)	4.80%
Fastest Growing Segment	NBFCs
Largest Market	Home Loan

France Loan Market is anticipated to project robust growth in the forecast period because of low-interest rates, increasing demand from automation in the loan process, and growing marketing strategies. A loan is an agreement in which a lender provides cash to another party in exchange for an interest payment and the return of the funds at the end of the lending arrangement. Loans provide liquidity to businesses and individuals, making them a crucial component of the financial system.

The global health crisis caused by the Covid-19 virus and the following impact on the French economy resulted in a significant increase in demand from French homeowners to re-negotiate their existing debts. Over one-third of all house loans from French banks in the three months leading up to May 2021 stemmed from re-negotiations of previous loan agreements. Home loans dominated the French consumer lending industry. Personal loans (including auto loans) were the second largest category, followed by credit card loans.

Rising Demand Of Home Loans Will Lead to the Market Growth

With interest rates in France at historically low levels in 2021, it is no surprise that the 12 months up to August 2021 saw more home sale transactions than any time in the previous decade (1,130,000 house sales). Banks specifically emphasize that new mortgage lending from French banks remains continuously robust, with 85% of banks reporting consistent demand for home mortgages. In September 2021, the total volume of house loans in France was USD23.37 billion. The French property market is the right choice from a long-term investing perspective. The French housing market has demonstrated in recent years that it is sufficiently solid and steady to withstand the transitory recession. This is primarily due to the nature of the French mortgage market. In France, 84.4% of borrowers have fixed-rate mortgages, making the French housing market less susceptible to the short ups and downs experienced by other countries. Thus, the high demand for home loans will fuel the France Loan Market.

Increase in Online Banking Will Boost The Market Growth

In recent years, there has been a shift toward mobile banking in France, with many residents using online payment apps to pay bills, transfer money, and even pay for groceries. One of Europe's most significant financial changes in recent years has been the growth of digital banking. France, one of Europe's developed economies, has undergone a substantial move toward internet banking; most French banks now promote digital services. Hence, increasing online banking will impact Loan Market in France. In terms of transaction value, mobile payments, credit cards, and other digital payment systems constitute France's most significant segment of FinTech. The increasing use of smartphones and extensive internet access drive demand for mobile financial transactions. Government programs also encourage customers to utilize contactless payment platforms. Thus, the France Loan market will grow faster with the increase in online banking.

Low Interest Rates Will Fuel The Market Growth

French consumers also have far lower borrowing costs for housing than their counterparts in other major European nations, partly due to restrictions limiting how quickly banks can raise interest rates. Due to France's low-interest rates, the market for French mortgages has remained strong, with the Banque de France reporting significant loan demand. Throughout 2021, interest rates on French mortgages have been historically low, contributing to the French housing market remaining in excellent condition. The average interest rate on new mortgages in France fell to an all-time low of 1.05% in August 2021. This was the lowest level of interest rates in the recent 50 years. Thus, a low-interest rate in France will lead to the growth of the France Loan market.

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Market Segmentation

The France Loan Market is segmented based on type, provider type, interest rate, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into secured and unsecured loans. Based on provider type, the market is segmented into the bank, non-banking financial companies, and others (fintech companies). Based on interest rates, the market is segmented into fixed and floating. The market is segmented based on the tenure period into less than 5 years, 5-10 years, 11-20 years, and more than 20 years. Based on region, the market is divided into Northern France, Western France, Southern France, Eastern France, and Central France.

Company Profiles

BNP Paribas Group, Crédit Agricole Group, Societe Generale Group, Groupe BPCE, AXA BANQUE, Crédit Mutuel group, La Banque Postale Group, Crédit du Nord, Banque de France and Dexia Group are also actively entering the market in recent years and further strengthening the market growth.

Attribute	Details
Base Year	2022
Historical Years	2018–2021
Estimated Year	2023
Forecast Period	2024 –2028
Quantitative Units	Revenue in USD Million and CAGR for 2018-2022 and 2023E- 2028F
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Type Provider Type Interest Rate Tenure Period Company
Regional Scope	Northern France, Western France, Southern France, Eastern France and Central France
Key Companies Profiled	BNP Paribas Group, Crédit Agricole Group, Societe Generale Group, Groupe BPCE, AXA BANQUE, Crédit Mutuel group, La Banque Postale Group, Crédit du Nord, Banque de France and Dexia Group
Customization Scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, France loan market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

France Loan Market, By Type:

o Secured Loan

o Unsecured Loan

France Loan Market, By Provider Type:

o Bank

o Non-Banking Financial Companies

o Others

France Loan Market, By Interest Rate:

o Fixed

o Floating

France Loan Market, By Tenure Period:

o Less than 5 Years

o 5-10 Years

o 11-20 Years

o More than 20 Years

France Loan Market, By Region:

o Northern France

o Western France

o Southern France

o Eastern France

o Central France

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in France loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

France Loan Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis

4.1. Brand Awareness

4.2. Factors Influencing Loan Availing Decision

4.3. Sources of Information

4.4. Customer Satisfaction

4.5. Challenges Faced

5. France Loan Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type Market Share Analysis (Secured Loan and Unsecured Loan)

5.2.2. By Provider Type Market Share Analysis (Bank, Non-Banking Financial Companies and Others (Fintech Companies))

5.2.3. By Interest Rate Market Share Analysis (Fixed and Floating)

5.2.4. By Tenure Period Market Share Analysis (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years)

5.2.5. By Regional Market Share Analysis

5.2.5.1. Northern France Market Analysis

5.2.5.2. Western France Analysis

5.2.5.3. Southern France Market Analysis

5.2.5.4. Eastern France Market Analysis

5.2.5.5. Central France Market Analysis

5.2.6. By Top 5 Companies Market Share Analysis, Others (2022)

5.3. France Loan Market Mapping & Opportunity Assessment

5.3.1. By Type Market Mapping & Opportunity Assessment

5.3.2. By Provider Type Market Mapping & Opportunity Assessment

5.3.3. By Interest Rate Market Mapping & Opportunity Assessment

5.3.4. By Tenure Period Market Mapping & Opportunity Assessment

5.3.5. By Regional Market Mapping & Opportunity Assessment

6. France Secured Loan Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Product Type Market Share Analysis (Mortgage Loan, Housing Loan, Auto Loan and Others (Gold Loan, Life Insurance Loan etc.))

6.2.2. By Provider Type Market Share Analysis

6.2.3. By Interest Rate Market Share Analysis

6.2.4. By Tenure Period Market Share Analysis

7. France Unsecured Loan Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Product Type Market Share Analysis (Personal Loan, Education Loan, Agricultural Loan and Others (Home Improvement Loan, Consumer Durable Loan etc.))

7.2.2. By Provider Type Market Share Analysis

7.2.3. By Interest Rate Market Share Analysis

7.2.4. By Tenure Period Market Share Analysis

8. Market Dynamics

8.1. Drivers

8.1.1. Rising demand of home loans

8.1.2. Increase in online banking

8.1.3. Low interest rates

8.2. Challenges

8.2.1. Data security and privacy concerns

8.2.2. Surging competition from NBFCs

9. Impact of COVID-19 on France Loan Market

9.1. Impact Assessment Model

9.1.1. Key Segments Impacted

9.1.2. Key Regions Impacted

10. Market Trends & Developments

10.1. Increasing demand of car loans

10.2. Rising government initiative

10.3. Attractive marketing strategies

10.4. Rising focus towards loan sector by Bank and NBFCs

10.5. Surge in multichannel collection service

11. Policy & Regulatory Landscape

12. France Economic Profile

13. Competitive Landscape

13.1. Company Profiles

13.1.1. BNP Paribas Group

13.1.1.1. Company Details

13.1.1.2. Product & Services

13.1.1.3. Financials (As Reported)

13.1.1.4. Key market Focus & Geographical Presence

13.1.1.5. Recent Developments

13.1.1.6. Key Management Personnel

13.1.2. Crédit Agricole Group

13.1.2.1. Company Details

13.1.2.2. Product & Services

13.1.2.3. Financials (As Reported)

13.1.2.4. Key market Focus & Geographical Presence

13.1.2.5. Recent Developments

13.1.2.6. Key Management Personnel

13.1.3. Societe Generale Group

13.1.3.1. Company Details

13.1.3.2. Product & Services

13.1.3.3. Financials (As Reported)

13.1.3.4. Key market Focus & Geographical Presence

13.1.3.5. Recent Developments

13.1.3.6. Key Management Personnel

13.1.4. Groupe BPCE

13.1.4.1. Company Details

13.1.4.2. Product & Services

13.1.4.3. Financials (As Reported)

13.1.4.4. Key market Focus & Geographical Presence

13.1.4.5. Recent Developments

13.1.4.6. Key Management Personnel

13.1.5. AXA BANQUE

13.1.5.1. Company Details

13.1.5.2. Product & Services

13.1.5.3. Financials (As Reported)

13.1.5.4. Key market Focus & Geographical Presence

13.1.5.5. Recent Developments

13.1.5.6. Key Management Personnel

13.1.6. Crédit Mutuel group

13.1.6.1. Company Details

13.1.6.2. Product & Services

13.1.6.3. Financials (As Reported)

13.1.6.4. Key market Focus & Geographical Presence

13.1.6.5. Recent Developments

13.1.6.6. Key Management Personnel

13.1.7. La Banque Postale Group

13.1.7.1. Company Details

13.1.7.2. Product & Services

13.1.7.3. Financials (As Reported)

13.1.7.4. Key market Focus & Geographical Presence

13.1.7.5. Recent Developments

13.1.7.6. Key Management Personnel

13.1.8. Crédit du Nord

13.1.8.1. Company Details

13.1.8.2. Product & Services

13.1.8.3. Financials (As Reported)

13.1.8.4. Key market Focus & Geographical Presence

13.1.8.5. Recent Developments

13.1.8.6. Key Management Personnel

13.1.9. Banque de France

13.1.9.1. Company Details

13.1.9.2. Product & Services

13.1.9.3. Financials (As Reported)

13.1.9.4. Key market Focus & Geographical Presence

13.1.9.5. Recent Developments

13.1.9.6. Key Management Personnel

13.1.10. Dexia Group

13.1.10.1. Company Details

13.1.10.2. Product & Services

13.1.10.3. Financials (As Reported)

13.1.10.4. Key market Focus & Geographical Presence

13.1.10.5. Recent Developments

13.1.10.6. Key Management Personnel

14. Strategic Recommendations/Action Plan

14.1. Key Focus Areas

14.2. Target Type

14.3. Target Provider Type

15. About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

What is the interest rate in France?

In 2022, the interest rate in France will be 2.5 percent.

Why are mortgage rates so low in France?

In contrast to British banks, which typically provide fixed terms of 5 years or less, French banks offer fixed rates for the entire mortgage duration. The French prefer this because it means that the banking system and property market will be benefited from long-term stability and security.

What are the key factors driving the growth of the France Loan Market?

The key factors driving the growth of the France loan market are increasing digitization, increasing car loan buyers, automation of loan procedures, and low-interest rates.

Who are the key players in France Loan Market?

The key players in France Loan Market are BNP Paribas Group, Crédit Agricole Group, Societe Generale Group, Groupe BPCE, AXA BANQUE, Crédit Mutuel group, La Banque Postale Group, Crédit du Nord, Banque de France and Dexia Group.

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Press Release

France Loan Market To Be Dominated By Home Loan in the Forecast Period

Jan, 2023

Increase in online banking and rising demands for home loans to fuel the growth of the loan market across the country through 2028.

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