Do you want to do something for the environment or lower your bills by carrying out energy-saving work in your home, but such an investment scares you? Thanks to the green loan and its advantages, you will make real interest rates savings in the long term to have access to cheaper and “greener” energy without breaking the bank. Zoom on the operation and the advantages of the green loan.
What is a green loan?
We call “green loan“, a form of loan which aims to exclusively finance energy-saving works. This loan is generally accessible with a minimum of €1,250 and a maximum of €15,000. Possible uses of a green loan include:
- Changing an old boiler
- Installation of photovoltaic panels to generate electricity.
- The installation of a geothermal production system.
- The installation of an ecological water heating system using solar energy in particular.
- Installation of double glazing.
- Insulation work on walls, roof and floors.
- The installation of thermostatic valves or programmable thermostat.
- Carrying out an energy audit.
The green loan is obtained only after justifying the planned expenses, but can be subscribed by both owners and tenants.
A very advantageous interest rate for the green loan
A few years ago, the green loan had the advantage of offering an interesting tax exemption with a reduction of 1.5% on the interest of the loan itself, then, a tax deduction of 40% on the interest that you will have paid during the fiscal year. However, in January 2013, this financing plan decided by the Belgian State in order to develop new energies in the country was finally abandoned, leaving individuals without help to finance their work.
Fortunately, credit organizations and banks have decided to give a boost to these “green” investors by offering them suitable loans offering interest rates much lower than those of traditional loans such as work loans. Thanks to these extremely advantageous rates, it is therefore possible to finance all kinds of home improvements aimed at saving energy at a lower cost. However, it is essential to justify the use of the capital by presenting a preliminary estimate.
These new loans, called “green loan” or “energy credits” are now offered by most lenders on the market, but their rate may vary from one organization to another.
If you plan to carry out work in your home in order to save energy, the green loan or energy loan is a very interesting solution which allows you to benefit from an advantageous interest rate. In order to benefit from the cheapest possible credit according to your projects, it is strongly recommended to use an online comparator which will present you with the best offers on the market.