What is a green loan?
Energy loans, also called green loans, are a variant of the home improvement loan. A green credit allows you to make renovations in your home in order to save energy.
Energy credits are a way for banks to promote environmentally friendly initiatives and, as a result, encourage their customers to prefer green lending to home improvement loans. Note that these are personal loans and not mortgages.
In addition to saving energy, these loans generally have a low interest rate. Water and electricity are expensive, saving on your energy bills will be welcome. In addition, energy retrofits save your property value, which could allow you to make a good return on investment in the event of a subsequent sale.
However, an investment in renewable energy can quickly come back very expensive. If you do not want to sacrifice a large portion of your savings, a green loan can be a solution, because it allows you to make the necessary arrangements at once and then repay your loan at your own pace.
How much money can I borrow through the energy loan?
Most banks allow you to borrow between € 1,250 and € 100,000, which you must repay in a period ranging from 6 to 120 months. An amount therefore sufficient to do the necessary work and thus save energy.
What type of work can I use green credit for?
An energy credit is used primarily to make the necessary adjustments to the use of renewable energy in your home. But what are the green works that everyone is talking about? To find out, you need to contact your bank to determine what is considered green work or not. Most banks offer energy loans (also known as green loans) to finance the following amenities: roof and floor insulation, installation of photovoltaic panels, purchase of a solar water heater or a heat pump.
However, there are some banks that offer green loans to protect your home against fire reports, so it is important to first check with the financial institutions involved.
Which loans can I group?
It is possible in most banks to apply for a green loan to finance other developments, provided that 75% of the work done is for the purpose of saving energy. Thus, you can also pass under this credit the financing of a new kitchen, a bathroom or a swimming pool. You will be asked to justify your purchases to determine what percentage of the amount borrowed will be used to achieve energy savings.
If you want to renovate your kitchen, we must focus on home improvement loans that are more suitable for this type of work. They allow you to renovate your home without any special ecological requirements.
Can I deduct an energy loan from my taxes?
The federal government provides a tax credit for certain environmentally friendly investments. It is important to find out beforehand as these measures may vary from one year to the next.
By making a request to the Flemish Government you can get a significant reduction on your property taxes for your energy renovations. There are also green loans granted by the Flemish government. To make the request, it is necessary to address you to the House of the Energy of your city. Attention, to obtain this type of loan there are special conditions to fulfill in order to benefit from it. In addition, some types of work are excluded. The amount you can borrow is lower than for energy credits offered by banks. It is therefore essential to compare offers to find the corresponding loan. It is possible to compare up to 11 energy loans. You can save up to 2.000 € by comparing offers!
Can I claim a bonus in addition to the green loan?
If you decide to invest in renewable energy, you can make a claim with your operator to see if you can get a bonus. These bonuses can be very interesting, so it is wise to stay informed about the possible contributions for the current year.
What conditions do I have to fulfill to apply for an energy loan?
In addition to the usual conditions required to apply for a personal loan, you must take other parameters into account in order to formulate your application for a green loan. The main purpose of green credits is to help you finance renovations to save energy. You will need to submit your quotes and invoices to your bank so that it can assess whether or not the borrowed money will actually be used to invest in renewable energy.
In the case of some banks, the amount allocated for green renovations is 75% of the loan, which means that the remaining 25% can be used for other types of work, such as the creation of a winter garden or a terrace. Some banks also allow you to make arrangements to protect your home from fire.
How to reduce the cost of my ecological work?
As with any home improvement loan, there are ways to reduce your costs. Indeed, it is always difficult to estimate in advance how much the ecological renovations to be undertaken will cost, just like the quantity of materials needed. A bad estimate can be detrimental since you may find yourself having to repay more than necessary.
To avoid this, be sure to always have quotes prepared beforehand. Indeed, most entrepreneurs are willing to offer a free, no obligation quote. This allows you to see which contractor can offer you the best price and you know exactly how much you need to borrow.
How to find the best energy loan?
To find the best green loan, it is important to compare the offers on the Belgian market. To do this, it is best to compare annual interest rates. You can compare green credits on our site and find the best deals to save on your energy bills!