In summary…
For a Lombard or heritage loan, two professionals are involved, not one: the bank, which studies the demand, sets the conditions and makes the offer, and the advise, This advisor will tell you whether you should borrow or sell, what assets to use as collateral, and what amount to aim for. Choose an advisor who compares borrowing and selling, including taxes, who provides you with the terms in writing before introducing you to a bank, and who explains how they are paid.
Balmont Conseil is a firm not independent In regulatory terms: it receives commissions on the contracts signed. Regarding credit, we don't lend: we connect you with our banking partners, who then make the offer.
A Lyon-based executive owns a portfolio of securities and a life insurance policy. A business opportunity arises, and selling his investments will trigger a tax. He wonders if he can borrow money using his investments as collateral. This is possible, subject to the conditions set by the bank. The advisor's job is to ensure you review these conditions before signing.
1. Two loans, one same logic: the guarantee
Lombard Credit: a loan guaranteed by your securities
Lombard credit is a loan whose repayment is guaranteed by your financial investments, which you leave in place. This is the logic behind what the Bank of France calls...’advance on securities : a loan "guaranteed by the pledge of securities in favour of the creditor". The Bank of France describes it as a loan generally of short duration, from one to three months, granted by a credit institution, most often to a company and sometimes to an individual (fact sheet of May 2022).
Asset credit: the entire estate as a basis
«"Asset-backed loan" is a common term: we use it for a loan whose amount and security are assessed against your entire portfolio (securities, life insurance policies, sometimes real estate), to finance a specific project. No official document we consulted defines it; the bank's offer, however, specifies exactly what is being offered as security.
| What you are giving as collateral | What this changes | What official sources are saying |
|---|---|---|
| Securities account or portfolio | The account is pledged as collateral for the loan. | The pledge is secured against a special account; the creditor has a right of retention over the securities and cash in the account (Bank of France). |
| Life insurance contract | You are using the contract as collateral for a loan. | In the event of a pledge, you cannot freely make redemptions (ABE-Infoservice) |
| Advance payment from the insurer on the contract | This is not a pledge: the insurer lends you the money himself. | The advance is an interest-bearing loan; when the beneficiary's acceptance is dated after December 18, 2007, it implies their agreement. |
Specifically. Pledging a life insurance policy means losing the right to make withdrawals freely for the duration of the loan. If this policy also serves as your cash reserve, ask the bank in writing under what circumstances a partial withdrawal is permitted.
2. Amount, margin call: what the bank can demand
The amount loaned is not the value of your portfolio. According to the Bank of France, it is "limited to a percentage of the value of the securities taken as collateral." This percentage, the quota, is set by the bank and is included in the offer: we do not give an average percentage.
The risk arises when prices fall. The Bank of France explains that the banker can then request...’extend the pledge to other securities This is what the industry calls a margin call. If you do not pay on the due date, the lender sends you a formal notice which must state that the enforcement of the guarantee can take place "within eight days"; it can then transfer the securities into its name or sell them on the market, at its discretion.
Your securities can therefore be sold at a time that you have not chosen: the threshold and the time limit are the two pieces of information to obtain before signing.
3. What you can finance, what it costs, what it changes for taxes
The purpose of the loan is stated in the offer and determines the applicable tax treatment.
A loan secured against investments finances a project that doesn't require you to sell your securities: an investment, a cash flow need before receiving payment, or a purchase. The stated purpose matters because it determines how interest is treated.
- Interest on a loan to purchase securities : the tax authorities classify them among non-deductible expenses (impots.gouv.fr).
- Interest rates on a loan to purchase an unfurnished rental property : deductible from property income under the actual regime, for only the interest paid during the year (impots.gouv.fr, page modified on July 10, 2026).
For any other use, we do not give a rule: have the deductibility confirmed by your accountant before signing, and request it in the loan offer.
The APR and the cost in euros
According to economie.gouv.fr, the APR The annual percentage rate (APR) represents the "all-inclusive" cost of the loan: interest, application fees, intermediary fees required to obtain the loan, and the cost of insurance and mandatory guarantees. It must be included in advertisements, preliminary loan offers, and loan agreements, and is used to compare offers from different institutions. Also ask for the total cost in euros over the loan term.
For the technician. The pledging of a securities account is evidenced by a declaration signed by the holder and dated, containing the six statements of article D. 211-10 of the Monetary and Financial Code, cited by the Bank of France.
4. Checkpoints before signing
- Wealthy assets Which accounts or contracts, and for what portion of their value?
- Quotient : what percentage of the value is loaned, and can the bank change it during the loan term?
- Margin appeal : from what point of decline in value, with what time frame to complete the guarantee, and what happens next?
- Duration and expiry date loan duration, repayment amortized or in one lump sum ("in fine"), fixed or variable rate and on what basis.
- APR and total cost : in writing, including the processing fees and any insurance.
- Covenants : the quantified commitments that the bank includes in the offer (ratios, thresholds, information to be provided), and what makes the loan immediately payable.
- Freedom of management Can you sell, arbitrate or buy back pledged assets, and under what conditions?
OUR Lombard credit simulator and the wealth credit simulator allow us to calculate the cost before any request is made.
5. Who advises what
| Speaker | His role | What you need to get from him |
|---|---|---|
| The bank | Studies the application, sets the loan amount, interest rate and terms, and makes the loan offer | A written offer: APR, quota, margin call threshold, clauses |
| The wealth management advisor | Compares borrowing and selling, including taxes; selects assets to pledge; verifies consistency with the rest of the estate | A written comparison and his announced remuneration. He does not grant credit |
| The chartered accountant | Confirms the interest treatment and, if the loan is processed through a company, the accounting entry | A written response regarding the deductibility of interest |
Balmont Conseil, a simplified joint-stock company (SASU) established in January 2013 and with no capital ties to any bank or insurer, presents credit solely as a referral to our banking partners. The bank itself reviews your application and provides you with the offer. Lombard credit and financing page details the approach.
Our position
A Lombard loan isn't a product to buy; it's a decision, unlike a sale. If the advisor presenting it to you doesn't start by asking what selling your investments would cost, find someone else. And don't sign anything unless you know the margin call threshold, its deadline, and the clause that makes the loan immediately payable. To compare advisor profiles, see What a consultant costs in Lyon. For the pledged life insurance contract, see our page. French life insurance.
Frequently asked questions
Does the firm grant me credit?
No. We don't lend money: we connect you with our banking partners. The bank reviews the application and makes the loan offer, with its own terms and conditions.
Can I continue to make withdrawals from a pledged life insurance policy?
Not freely. ABE-Infoservice indicates that in the case of a lien, you cannot freely make redemptions. The creditor's agreement is therefore required.
Are the loan interest payments tax-deductible from my income?
It depends on the loan's purpose. Interest on a loan to purchase securities is not deductible; interest on a loan to purchase an unfurnished rental property is deductible from rental income under the actual expense method. For other uses, consult your accountant.
Are you considering a loan secured against your investments?
The first exchange is free, in Lyon or via videoconference: bring the list of your accounts and contracts, and we compare borrowing to selling before any application to a bank.
Book an appointment
The initial consultation is to establish your exact situation and determine if there is anything that can be done—sometimes there is nothing, and we will say so as well. Thirty minutes, with no obligation.
Book an exchange with Balmont Conseil
Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 24/10/2026.
Official sources consulted
- Bank of France — Advances against securities (fact sheet 426, May 2022)
- ABE-Infoservice — What do you need to know if you have taken out a life insurance policy? (pledge, advance)
- economie.gouv.fr — Credit: What does the annual percentage rate (APR) mean? (July 11, 2024)
- impots.gouv.fr — Are the expenses incurred on my securities deductible?
- impots.gouv.fr — I bought a property that I rent out unfurnished: can I deduct the loan interest?
