You can borrow up to €92,000 at a preferential rate.
The amount which you can borrow depends on the interest earnt and the duration of your repayments. You can make repayments at your rhythm over a period of 2 to 15 years. You can use your loan for a project which conforms to the rules defining the account PEL: for example: purchasing or building your main residence, renovating, financing a new second home, etc...
The minimum length of time for keeping this savings account open is 4 years. It is possible to withdrawal money from it before 4 years, but you have to close your PEL, it would affect your right to a mortgage, the interest and the government bonus. At least you will have the same interest as a CEL.
Other types of Property linked Savings: "Carré Vert" and "Carré Bleu"
There are two further types of savings accounts possible which are linked to the "Plan Epargne Logement" (Savings for Property Projects), these are called the "Carré Vert" and the "Carré Bleu". On these accounts, you can only make single payments to save your money for a period from 4 to 8 years. The first time you can make a payment from €6,000 to €24,000, afterwards you can add €3,000 single payments for a total of €37,000. To conclude, you can save up to a maximum of €61,200. You can not withdrawal money, it will close the account.
The main difference between these two types of savings is that with the "Carré Vert" you are assured to receive regular quarterly income from the capital, these payments paid into another account. The "Carré Vert" interest rate is net of income tax.
With the "Carré bleu", it is set up so that it capitalises the interest, thus maximising the amount available for the property project at term. The "Carré Bleu" interest rate is net of income tax.
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