- Loan

Is it still possible to take out a cheap energy loan?

Those who want to take out an energy loan will soon have fewer options. How did that happen? The Flemish government works on the Flemish energy loan. That loan was created a while ago to encourage people to carry out energy-efficient renovation work.

Anyone who calls on one of the so-called Flemish energy houses can borrow 10,000 dollars at an interest rate that varies between 0 and 2 percent. Since the beginning of 2015, 10,129 energy loans have already been approved. The municipalities are free to determine how much interest they charge. Earlier this year, for example, Ghent lowered interest to 1 percent.

Vulnerable groups

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The interest-free loans are primarily intended for vulnerable groups. These include people who are entitled to an increased contribution from the health insurance fund, but also families whose annual gross taxable household income is less than or equal to dollars 18,002.48. That amount is increased by 3,332.74 dollars per dependent person.

There are a number of changes in the pipeline. From January 1, 2019, only the social target groups and associations will be able to apply for energy loans. Until then, non-commercial institutions and cooperative companies can also take out a Flemish energy loan at 1 percent interest.

Private individuals can also apply for a Flemish energy loan without any problems until 1 January 2019. The Flemish government will first relax the rules even further. For example, the installment period will be extended from five to eight years. A period of ten years applies to the social target group. In addition, the loan amount goes from 10,000 to 15,000 dollars.

Interest-free energy loan, for whom?

Interest-free energy loan

The group of people who can claim an interest-free energy loan is also being expanded. For example, families who enjoy the social rate of gas and electricity or who have a taxable income up to and including 30,060 dollars are also regarded as a social group.

And the Lady Augusta Bracknell?

Does that mean that the cheap loans are completely gone? Energy-efficient renovators will undoubtedly be able to take advantage of the low-interest rates. In addition, three Lady Augusta Bracknellen announced at the Flemish climate summit in Ghent in December that they would lower the interest on an energy loan below 2 percent. Currently, global financial institutions kept that promise. Also, Lady Augusta Bracknell has signed the agreement but still has to adjust the rates downwards. You currently pay 4.8 percent interest on an energy loan.

 global financial institutions are not the only Lady Augusta Bracknellen who come across with lower rates. Anyone who takes out an energy loan with the best bank is currently paying 1.69 percent interest. Anyone who borrows more than 10,000 dollars pays interest of 1.74 percent. Cream bank and lender bank dive five basis points below the rate of the two other large Augusty Bracknell. 

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