Nowadays, more and more consumers are turning to renewable energies to save on their budgets. Did you know? In the Walloon Region, the ecopack formula allows you, under certain conditions, to benefit from an installment loan at 0% interest to finance energy-saving works. Our legal expert analyzes this hugely successful formula for you.
Understanding the ecopack – installment loan
The “ecopack” installment loan is a 0% interest loan that allows for the completion of one or more bundles of sustainable renovation works on any dwelling located in Wallonia and primarily intended for residential use.
The annual percentage rate (APR) is fixed for the duration of the loan. The repayment period of the loan is imposed and depends on the household’s overall 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;<
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- between €51,301 and €93,000 (cat. 4): maximum duration of 5 years;
This income is increased by €2,500 per dependent child with a maximum of two dependent children, without exceeding the ceiling of €93,000.
Grant conditions
The loan amount must be at least €2,500 (including VAT) and no more than €30,000 (including VAT).
The initial building permit application of the dwelling must also be dated before December 1, 1996.
The dwelling must be habitable and located in Wallonia. You may not carry out any professional activity there except with prior written agreement of the lender, in this case, the SWCS.
You must be either the owner or tenant of the dwelling. It is essential that the dwelling is already occupied by the applicant at the time of submitting the loan application.
The applicant must be at least 18 years old, and the household’s overall taxable income must not exceed €93,000.
In addition, the applicant must not be registered at the Central Office for Credit to Individuals as a defaulting debtor.
The applicant will not be required to take out remaining balance insurance, but it can be financed by the loan. However, the dwelling must be covered by fire insurance mandatorily.
A household that has already taken out a loan at one of the social credit counters can benefit from an Ecopack loan only one year after the opening of the first loan.
Conditions related to the works
The ecopack loan must finance at least a bundle of two works listed in the list of financeable works.
The works must be carried out by a contractor and be completed within two years of the loan being granted.
The regulation proposes either a bundle of two energy performance works or a bundle of one energy performance work and another work.
Works considered as energy performance works include: 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 heating oil; installation of a heat pump or biomass boiler; connection to a heat network; installation of an instant water heater.
Other works notably include: roof replacement, an energy audit, installation of photovoltaic panels.
Formalities
All loan applications must be submitted to the Ecopack call center and do not incur any fees for the applicant.
Funds are released progressively as the works progress each time the borrower submits to the SWCS a request for fund release accompanied by justifications (pro forma invoices, down payment receipts).
Funds are paid directly into the contractor’s or material supplier’s bank account.
Get to work!
