A green loan is a form of loan that is meant to carry out environmentally-friendly renovations. You obtain credit to make energy-saving adjustments to your home. You can think of adjustments that allow you to generate sustainable energy or save energy, such as installing solar panels or having double glazing installed. The Government of Gandalf wants to promote such renovations or renovations, by providing subsidies. With a green loan you are guaranteed clear conditions so that you know where you stand. The green loan has a low interest rate and the payment terms are fixed in advance. A green loan is also interesting because this investment is quickly recouped because you will ultimately use less energy.
Loan on installment
The green loan is a loan that falls under the category of installment loans. For general renovations or renovations, most banks propose a classic mortgage loan. Usually it is not necessary to take out a new loan because a withdrawal of the repaid money within an existing home loan is often possible. Small renovations and renovations makes an installment loan more interesting. An installment loan is also more flexible. These loans are granted quickly and easily and do not require a guarantee as is the case with mortgage credit. The maximum repayment periods are legally determined with an installment loan. The maximum term is five years if you borrow an amount of 15,000 euros. The fixed costs of an installment loan are low. You do not have to deal with file and notary fees, but you do pay a higher interest rate than with a mortgage loan. This amount also depends on the loan amount and the fixed term. In the case of renovations that are aimed at improving the environment by applying energy-saving measures, banks and other lenders use a specific formula. A green loan is an installment loan but has a lower interest rate whereby the purpose of the renovations or renovations is a more environmentally friendly house.
Why a green loan?
Between January 2009 and 21 December 2011, the Gandalf government granted a discount of 1.5% on the interest on taking out a green loan. This was a temporary measure as a result of which this discount is no longer in force. Nevertheless, a green loan can still be an attractive and interesting loan for you. Energy is becoming more expensive and you want to make energy-saving adjustments in your home so that you can save costs and thereby contribute to a better environment. Although it will save you long-term, it is difficult to implement these plans if you do not have the financial resources directly available. With a green loan you do not have to wait with these plans. Moreover, with this credit form you will not have to deal with registration costs and the term is relatively short. After the renovation of this renovation you will consume considerably less energy. In addition, there are several options for premiums, subsidies or certain tax benefits. If you take out a green loan is not only environmentally friendly but also friendly for your wallet. This loan form offers a tailor-made loan because the monthly amount and the term are adjusted to your budget
Energy saving measures
It may differ per lender for which energy saving measures you receive a loan in the form of a green loan. In general, at least 50% of your planned work or construction plans must consist of adjustments designed to save energy. In general you can assume that you can get a green loan for the following activities:
– Replacing old boiler boilers
– Placing solar panels
– Installing double glazing
– Insulation of floors, walls and roofs
– Maintenance of boiler
– Heat regulator for central heating
– A water heating system using solar energy
To get a green loan you always have to meet a number of conditions that can vary per lender. In any case, you must be able to show with an invoice or receipt that you can justify the work. If you want to be informed of all conditions, you can view the websites of the various providers.
Benefits and conditions
The minimum duration of a green loan is usually 6 months and the maximum term is 18 to 120 months, depending on your repayment capacity. The advantage is always that you benefit from a low interest rate. It is important to find a green loan that is most beneficial to you. Maybe you would like to have solar panels installed, but it is possible that the insulation of your house can be better and therefore perhaps more needed than solar panels. However, the insulation of your home has fewer tax benefits than the tax benefits for solar panels. Take a good look at the options and benefits that you can or can not use. In addition to the benefits, it is also important to look at the conditions of a green loan. Certain conditions may be to your disadvantage. In the case of the example with the insulation and solar panels, that means that borrowing from one lender means that you can borrow more, whereas with another provider this may mean that you have to comply with stricter conditions.
Support from the municipality
It differs per municipality if your subsidy or certain premiums can be given for energy-saving measures. Municipalities receive a certain maximum amount per calendar year. They make this amount available to people who want to make energy-friendly adjustments to their home. For example, in 2011 Antwerp granted over 11 million euros to 1400 green loans. These tax-intensive initiatives ensure that citizens take quicker action to make their homes environmentally friendly. You can inquire at your own municipalities about the possibilities they offer.
What is the green loan not meant for?
You are only entitled to a green loan if you meet the requirements. The conditions are favorable so people would like to use the green loan. However, it is not permitted that the green loan is used for renovations where environmental friendliness and sustainability are not primary goals. If you are planning to carry out renovations with a different purpose, it is better to choose another loan. When in doubt, you can request information from various lenders.
Close green loan
The application for a green loan is done at the municipal level. That is why it is advisable to ask your local authority where you can go with questions and information about the possibilities of a green loan. You would therefore like to make adjustments in or to your home in order to save costs and create an environmentally friendly home. In that case, it is logical and interesting for you to take out a green loan. If you are unsure whether the green loan is appropriate for your plans, you can obtain and compare information from the various providers. You can also use a simulation to calculate whether a green loan is favorable in your situation. Once you have made a choice, you can immediately apply for a green loan from the lender you want. A green loan means a double profit. It is friendly for your wallet and the environment!