Attractive interest rate of 2.50% p.a.
The BOV Personal Energy Loan includes a
series of features and benefits that will be of great assistance to applicants.
The loan is being offered at an advantageous interest rate of 2.50%, and you
can benefit from a maximum loan amount of €50,000.
During the first 10 years of the loan, also known as the Interest Subsidy Period, you will only repay the capital amount due with the interest element being settled directly from the EERE Malta Subsidy Account.
In the event that the duration of the loan is in excess of 10 years the remaining monthly repayments will need to cover both capital and interest due.
This is attributed to the fact that in the first 10 years you will be receiving a subsidy of 2.50% p.a. on the interest being accrued, which is exclusive from your monthly repayment. In case the variable interest rate is decreased below 2.50% p.a. by the Bank, the subsidy will cover only such interest charged. In case the variable rate increases above 2.50% p.a., the interest rate subsidy will not exceed the 2.50% p.a.
The financial collaboration between BOV and the European Investment Fund (EIF) ensures that truly affordable loans are being made available, with the EIF, providing a 2.50% p.a. interest rate subsidy during the initial 10 year Interest Subsidy Period.
You do not need to make any upfront contribution, nor provide collateral.
The BOV Personal Energy Loan promotes Renewable Energy and Energy Efficiency investments through the Energy Efficiency and Renewable Energy (EERE) Malta Fund. It is ideal for those wishing to embark in making their energy consumption and transportation costs less expensive and more environmentally friendly.
You must be at least 18 years of age and in full time employment to be eligible to apply for the loan. Loan term cannot go beyond your legal retirement age.
Attractive features and benefits
| Interest rate |
2.50% p.a. |
| Subsidy Interest rate |
2.50% p.a. for the initial 10 years |
| Maximum loan amount |
€50,000 |
| Upfront Contribution |
Nil |
| Collateral requirement |
Nil |
| Maximum Loan & Repayment Term |
15 years |
| Processing Fee / Early Repayment Fee |
Nil |
| Purpose – Eligibility |
The loan may only be used to finance those measures described as per List of Standardised Measures, attached below. |
Representative Example
Representative example of a BOV Personal Energy Loan based on a loan amount of €10,000 being made available by BOV at a variable interest rate of 2.50% p.a. over a term of 15 years. The variable interest rate of 2.5% p.a. is made up of an interest margin of 0.05% plus a variable Consumer Lending Base Rate (CLBBR) established by the Bank from time to time, currently 2.45%.
The loan will be repayable in two phases:
Phase 1 – Repayable over the initial 10 years through 120 monthly repayments of €55.56 (fifty-five Euro and fifty-six cents) each representing capital only (i.e. exclusive of interest). The interest during this initial period of 10 years will be paid monthly by the Energy Efficiency and Renewable Energy Fund of Funds (EERE Malta).
Phase 2 – Repayable over the subsequent 5 years through 60 monthly repayments of €59.21 (fifty-nine Euro and twenty-one cents) each representing capital and interest.
The APRC will be 0.319% p.a. The APRC does not include the interest amount for the first 10 years as the interest rate will be fully subsidised by EERE Malta.
The total sum payable throughout the term of the loan will be €10,219.80 consisting of €10,000 capital and €219.80 interest, assuming the interest rate subsidy of 2.50% p.a. during the first 10 years of the loan and assuming the variable interest rate remains unchanged.
Without the subsidy on interest during the first 10 years, the total sum payable throughout the term of the loan, assuming the variable interest rate remains unchanged would be €12,031.20 consisting of €10,000 capital and €2,031.20 interest. The subsidy on interest may therefore result in a savings of up to €1,811.40.
No processing fees and early repayment fees apply on this product.
The BOV Personal Energy Loan benefits from the guarantee granted in the framework of the Energy Efficiency and Renewable Energy Fund of Funds (“EERE Malta”). The objective of this Fund of Funds and its first loss guarantee combined with an interest rate subsidy scheme is to support the access of the final recipients for their investments in energy efficiency and renewable energy measures.
EERE Malta is co-financed by the Republic of Malta, the European Union under the European Regional Development Fund.