Consumers can avail loan for photovoltaic system.

 

In Germany, ecology and environmental protection have long been more than just a concern of green politicians or nature-conscious marginalized groups. But saving electricity, separating garbage and using the subway instead of the car is not enough – homeowners who want to make their contribution to environmentally friendly energy use in Germany can do so, for example, using a photovoltaic system on their roof.

In an average single-family house, the purchase and installation of a solar power system costs an average of 9,000 USD. However, consumers do not have to laboriously save the entire capital for the plant for years: various public and private banks offer environmentally conscious consumers cheap loans for photovoltaic systems.

Finance the photovoltaic system with a cheap loan

Finance the photovoltaic system with a cheap loan

Anyone who decides to finance the solar power system with a low-interest loan has the choice between public and private lenders: In addition to the state development bank Infra, there are various support programs from the state or the municipality and the photovoltaic loans from private banks. Consumers who choose financial support from a private bank can choose from different lenders. A credit comparison gives consumers a good overview of the current conditions of many different photovoltaic loans after entering the required loan amount and the desired term.

Similar to construction loans or real estate financing, private banks generally require credit security when granting photovoltaic loans. The bank uses this security as a “pledge” against a possible loan default. In contrast to construction finance, when a solar system loan is granted, the system itself is only deposited as security with the bank – as a rule, no entry is made in the land register for these loans.

Subsidized photovoltaic loan from the Infra banking group

Subsidized photovoltaic loan from the Infra banking group

Homeowners can also obtain alternative and particularly low-interest financing through the state credit institution for reconstruction, Infra-Bank for short. The development bank is currently granting the subsidized loan from an effective annual interest rate of only 1.41 percent.

According to the EEG regulation passed in 2009, part of the energy generated by the solar system has to be fed into the public power grid – with the remuneration of this power feed, owners of a solar power system can often pay the running costs for its maintenance and the repayment of the financing.

Calculate repayment and loan interest with repayment calculator

The low key interest rates

The low key interest rates

More and more consumers are currently being given the opportunity to carry out real estate financing. One reason is the low key interest rates, which the Meduim Centrum Bank reduced by 0.1 percentage points just a few days ago. Banks can now borrow money from the central bank at a rate of only 0.15 percent and are therefore able to provide very cheap loans. These inexpensive loans can be found particularly in the area of ​​real estate financing, i.e. in the form of annuity or repayment loans. Interest rates on the one hand are very low, but interested loan seekers on the other hand should not forget to calculate the monthly charge.

Low interest rates can also represent an interest trap

Low interest rates can also represent an interest trap

Ultimately, the low interest rates can also represent an interest trap, because borrowers can generally not secure the low interest rates over the entire repayment period of the loan. It can happen, for example, that the interest rate after the fixed interest rate expires in five or ten years will be significantly higher than the current one and that the monthly loan rate will therefore be difficult to bear or no longer affordable. A tool that can be used to calculate repayments and loan interest is the so-called repayment calculator. With this online calculator, the interested loan seeker can calculate the monthly loan rate at which certain repayment rates and interest rates would lead.

Customer only has to provide some information

Customer only has to provide some information

The operation of such computers is relatively easy, because the customer only has to provide some information. This primarily includes the desired loan amount, the term of the loan, the initial repayment and the loan interest rate that the respective bank requires. Based on this information, the calculator can be used to calculate how high the monthly rate will be. For example, if you need a loan of over 100,000 USD and decide to make an initial repayment of three percent, you will be charged an annual charge of just 5,000 USD at an interest rate of two percent.

Calculated monthly, this leads to a comparatively low credit rate of less than 430 USD. This number already shows that it has now become cheaper for many consumers to carry out real estate financing instead of paying rent. One of the advantages of the loan calculator is that the optimal repayment and interest payment can be calculated using various variables. As a result, repayment calculators can help consumers find the right amount.