An installment loan is often more expensive, compared in particular with a mortgage. However, it is quite possible to find very interesting offers including a zero rate installment loan so that you can finance renovation work at home.
A loan adapted to the precarious public
A personal loan generally has an interest rate of around 2%. But a large part of the public, with limited income, simply do not have the possibility of taking out this kind of credit which is still too expensive for them. It is for this reason that the banks, in partnership with the public authorities, have set up a specific device adapted to their precarious situation. The zero-rate installment loan makes it possible to finance energy renovation works such as insulation, change of heating installation or even repair of the roof. The goal is to help these low-income people improve their homes by current standards.
3 zero-rate loan formulas in Wallonia
Wallonia, via the Walloon Social Credit Company (SWCS) and the Large Families Housing Fund, offers three categories of zero-rate installment loan. On the one hand, the Across Lender renovation works intended to improve the energy performance of housing. Since 2016, it is no longer necessary to combine several jobs to benefit from it and the device can be combined with a premium.
On the other hand, the Renopack is a zero-rate loan for a specific purpose including the renovation of the roof, walls and floors as well as the refurbishment of the electrical installation, these works which generally benefit from the renovation premium.
Finally, the Accesspack is a zero-rate loan offered to the most modest households, those whose incomes are less than $ 53,000. This pack makes it possible in particular to finance the purchase, construction or even the renovation of housing as a main residence.
What about borrower insurance?
A borrower insurance is intended to guarantee the repayment of the bank in the event of default by the borrower. It is not compulsory, but lenders always match a loan with the purchase of insurance. The same is true for assisted loans such as zero-rate installment loans. Care should therefore be taken because if the base rate is zero, the TEG is never. The insurance costs, administrative costs will constitute the overall effective rate of the loan.