Nowadays, more and more consumers are turning to renewable energies to save their budget. Did you know? In the Walloon Region, the écopack formula allows you, under certain conditions, to benefit from a 0% interest installment loan to finance energy-saving works. Our legal expert analyzes this resounding success formula for you.
Concept of the écopack – installment loan
The “écopack” installment loan is a 0% interest loan that allows the realization of one or more sustainable renovation work packages on any housing located in Wallonia and primarily intended for habitation.
The annual percentage rate (APR) is fixed throughout the loan duration. The loan repayment period is imposed and depends on the household’s globally taxable income:
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- less than €18,700 (cat. 1): maximum duration of 12 years;
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- between €18,701 and €34,200 (cat. 2): maximum duration of 10 years;
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- between €34,201 and €51,300 (cat. 3): maximum duration of 8 years;
- between €51,301 and €93,000 (cat. 4): maximum duration of 5 years;
These incomes are increased by €2,500 per dependent child with a maximum of two dependent children, without exceeding the ceiling of €93,000.
Granting conditions
The borrowable amount must be a minimum of €2,500 (including VAT) and a maximum of €30,000 (including VAT).
Furthermore, the initial building permit application for the housing must be prior to December 1, 1996.
The housing must be healthy and located in Wallonia. You cannot conduct a professional activity there unless you have prior written agreement from the lender, in this case, the SWCS.
You must be either the owner or the tenant of the housing. It is imperative that the housing is already occupied by the applicant at the time of the loan application.
The applicant must be at least 18 years old, and the household’s globally taxable income must not exceed €93,000.
Moreover, the applicant cannot be registered with the Central Credit Register for individuals as a defaulting debtor.
The applicant will not be required to take out a remaining balance insurance, but it can be financed by the loan. However, the housing must be covered by fire insurance.
A household that has already contracted a loan at one of the social credit counters can benefit from an Écopack loan only one year after the opening of the first loan.
Conditions related to the works
The écopack loan must finance at least a package of two works listed in the fundable works list.
The works must be carried out by a contractor and completed within two years of the loan granting.
The regulation proposes either a package of two energy performance works or a package of one energy performance work and another work.
Considered as energy performance works are: thermal insulation of the roof, walls, and floors; replacement of frames or glazing; installation of a ventilation system; installation of a condensing boiler using natural gas, propane, or oil; installation of a heat pump or biomass boiler; connection to a heat network; installation of an instantaneous water heater.
Other works notably include: roof replacement, energy audit, installation of photovoltaic panels.
Formalities
Any loan application must be submitted to the Ecopack call center and does not incur any costs for the applicant.
Funds are released as the works progress each time the borrower submits a fund release request to the SWCS accompanied by supporting documents (pro forma invoices, deposit receipts).
Funds are paid directly into the bank account of the contractor or material supplier.
To your works!