Avant Money, in partnership with An Post Money, have become the latest participants in the Government-backed Home Energy Upgrade Loan Scheme.
From today, homeowners can apply for the scheme’s low-cost retrofit loans through Avant Money, via the An Post website, with interest rates starting at 3.69%.
The €500m Home Energy Upgrade Loan Scheme launched in April of last year and is the first of its kind in Ireland and for the European Investment Bank (EIB) Group.
The scheme is delivered by the Strategic Banking Corporation of Ireland (SBCI) on behalf of the Department of the Environment, Climate and Communications, and supported by the Sustainable Energy Authority of Ireland (SEAI) and the EIB Group.
It provides unsecured loans (no requirement for the loan to be secured against the property being upgraded) ranging from €5,000 to €75,000, with repayment terms of up to 10 years.
These loans help homeowners to carry out energy efficiency and renewable energy upgrades, such as insulation and heat pumps, that are also grant-aided by the SEAI.
Once approved, the loans can be drawn before works begin.
This gives certainty to homeowners that they have the funds for the planned energy upgrades as well as any up-front costs or “milestone” payments, which are often identified by homeowners as barriers to upgrading their homes.
As well as Avant Money, the Home Energy Upgrade Loan Scheme is also available from PTSB, AIB and Bank of Ireland.
It is expected that a number of credit unions from the Irish League of Credit Unions will join the scheme in the coming weeks, further enhancing access to more affordable retrofit loans in local communities.
The Minister for Climate, Environment and Energy Darragh O’Brien said the design of the scheme ensures that Avant Money and An Post, as well as the other participating lenders, can offer highly-competitive loan terms to homeowners looking to make their homes warmer, healthier and cheaper to run.
“The scheme was developed specifically to offer a straightforward application process and complement existing SEAI home energy grant offerings,” Mr O’Brien said.
“It is a great example of the Government, financial institutions and the retrofit sector working together to deliver climate action. I’m confident that today’s announcement will further build momentum in the retrofit sector, which has seen huge growth in recent years,” he added.
Minister for Finance Paschal Donohoe said that Avant Money, operating through An Post, is the first non-bank on-lender under the €500m Home Energy Upgrade Loan Scheme.
“I believe this venture with the Strategic Banking Corporation of Ireland is a very positive step for both Avant Money and An Post; that will further broaden access to this novel scheme, being the first of its kind in the EU,” Mr Donohoe said.
“This scheme provides a double benefit. For the homeowner, it provides unsecured, 10-year low-cost finance to homeowners and small landlords to improve the energy efficiency of their homes and reduce their energy costs,” the Finance Minister said.
“From the Government’s perspective, the scheme assists in lowering our C02 emissions, thus contributing significantly to meeting Ireland’s climate targets. Having the means to combine a low-cost loan with SEAI grants makes this financial product a very attractive offering,” he added.
Daniel Pelluz, Head of Consumer Finance at Avant Money, said that sustainability and supporting the green economy is important to Avant Money.
“This funding allows us to support Irish homeowners in accessing lower-cost loans to enable them to improve the energy efficiency of their homes,” he added.
