"KlimaPrêt" climate loans aim to promote sustainable renovation of dwellings that are over 10 years old by prefinancing the renovation work.
These climate loans contribute not only to responsible energy consumption and environmental protection, but also to lowering energy costs, and increasing the comfort and value of the dwelling.
There are 2 loan formulas:
- zero-interest climate loans, described in detail on this page;
- reduced-interest climate loans.
Interested persons can contact the Single point of contact for housing assistance (Guichet unique des aides au logement).
The loan is granted by authorised banks on the basis of an agreement in principle from the Single point of contact for housing assistance.
A zero-interest climate loan is fully guaranteed by the Government to facilitate access to a bank loan and reduce the costs linked to the guarantees required by financial institutions.
The Housing Ministry covers:
- fees related to the service of an energy consultant (capped at 2 x EUR 1,500, i.e. once for the energy consultation itself, and once for one-off support for the implementation of the work), which is a prerequisite for being eligible for the loan;
- all interest incurred on the loan.
Who is concerned
Zero-interest climate loans are reserved for households that satisfy the following socio-economic conditions:
- the household’s income does not exceed a certain maximum, calculated on the basis of the makeup of that household;
- for dwellings built after 10 September 1944, the usable floor area of the dwelling must be:
- between 65 m2 and 140 m2 for a single-family house;
- between 45 m2 and 120 m2 for a unit in an apartment building;
- none of the members of the applicant/beneficiary’s household must be an owner, co-owner, usufructuary, long-term leaseholder or holder of a building lease on another dwelling, be it in Luxembourg or abroad;
- the dwelling in question must have been the applicant's primary and permanent residence for at least 10 years.
The useful residential floor space is increased by 20 m² for any dependent children in the applicant's care, from the 3rd child onwards, and by 20 m² for any first-degree relative of the applicant, and for any disabled person living in the beneficiary's household, beyond the 5th person living in that dwelling, and providing that person is not the owner of a property in their own right.
How to proceed
Filing an application
Eligible persons should contact the Single point of contact for housing assistance to arrange an appointment.
During this appointment, the applicant:
- presents the renovation project;
- submits the request for payment of the energy consultant's fees for the development of the complete renovation project for their building.
That application must be signed by all owners of the building.
The application must be accompanied by the following documents:
- the deed of property for the dwelling;
- documents confirming the legal residence status of the applicant and the members of their household;
- documents proving the income of the applicant's household;
- a copy of the applicant’s identification document.
Once the application has been approved, the Single point of contact issues a certificate of covered costs, which is valid for 6 months
Once the renovation concept has been finalised by the approved energy consultant, the applicant sends it to the Single point of contact along with the duly completed and signed application for support under the climate and sustainable dwelling bank packet scheme (DEPA-2017).
The application must also include the following documents:
- the duly completed zero-interest KlimaPrêt (KPTZ-2017) form;
- the energy consultant's report (renovation concept);
- tenders and/or quotes, reviewed by the energy consultant (a quote must be attached for each envisaged measure);
If the Single point of contact for housing assistance gives an agreement in principle to fund the project, the applicant can go to one of the banks participating in the "KlimaPrêt" initiative to ask for their loan. The agreement in principle is valid for 6 months.
Applying for a loan from the bank
When the bank has approved the loan, the applicant submits a copy of the loan contract to the Single point of contact for housing aid and work can begin.
The following commercial banks are involved in the KlimaPrêt initiative:
- Banque et Caisse d’Epargne de l’Etat (BCEE);
- BGL BNP Paribas;
- Banque Internationale à Luxembourg;
- Fortuna Banque;
- ING Luxembourg;
- Banque BCP.
Realisation of the work
Once the loan is granted, the renovation plan can no longer be altered, unless an incident occurs during the works, necessitating an adaptation.
Any adaptation must be reported within 5 working days. In the event that an adaptation is necessary, on the advice of the energy consultant, payments of the interest subsidy will be suspended until checks have been performed to ensure that the adaptation conforms to legal requirements.
During the works, the energy consultant periodically inspects the implementation of the renovation works, and checks and approves the invoices. The credit institution only pays the invoices submitted by the beneficiary of the loan if those invoices have been approved by the energy consultant.
Once the works have been completed, the concerned party can apply for a “PRIMe House” grant for their building.
The beneficiary of the zero-interest climate loan must pay back only the capital of the loan, in the amount of no more than EUR 50,000, over 15 years maximum.
The Ministry of Housing also offers a one-time capital grant, equal to 10% of the main loan (capped at EUR 5,000), so as to reduce the overall amount that is to be paid back.
Forms / Online services
Demande d’aide dans le cadre du paquet banque climatique et logement durable - personne physique (DEPA-2017)
Demander un prêt climatique (KlimaPrêt) à taux zéro
Demander un prêt climatique (KlimaPrêt) à taux zéro
Demande de prise en charge du conseiller en énergie
Demande de pris en charge du conseiller en énergie