The essence of a green loan is that the bank offers a better rate than on conventional loans if the amount is verifiably spent on energy efficiency: insulation, window replacement, heating modernisation or solar panels. The discount is often backed by an EU or state interest subsidy.
Credit assessment criteria resemble those of conventional condominium loans, but with an important extra requirement: it must be proven that the renovation actually produces energy savings, usually via an energy certificate or expert calculation.
Combining a green loan with a non refundable grant is often the most cost effective solution: the grant covers part of the investment and the loan the remaining own contribution, spreading repayment over several years instead of a single large special levy.
One practical consideration: green loan conditions and availability vary by bank and period, so it is always worth comparing several offers rather than automatically turning to the building's account holding bank.
It is also important to clarify how repayment responsibility is shared: the building takes the loan as a legal entity and repayment is divided by ownership share as part of the common cost, which the resolution must record clearly.
Merbo's finance team helps compare available green loan offers and shows how they fit the grant funding of a given renovation project before the financing decision reaches the general meeting.
Taking a green loan does not exclude applying later for a grant on the same project. Often the opposite is true, as parallel grant applications reduce the lender's risk.