Tipperary financial institution now offering home energy upgrade loans

A Tipperary financial institution has become the latest to offer loans under the Government's Home Energy Upgrade Loan Scheme.

Clonmel Credit Union has become the latest lender to accept applications under the scheme which  aims to encourage homeowners to invest in energy upgrades to make their homes warmer, healthier and more comfortable, with lower emissions and lower energy bills. 

Clonmel Credit Union is now taking applications for the loan, with interest rates starting from 3.25%.

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The Home Energy Upgrade Loan Scheme is the first of its kind in Ireland, and aims to ensure that access is simple and speedy with an emphasis on reducing the workload for homeowners.

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.

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.

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.

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The local credit union, along with six other credit unions from the Irish League of Credit Unions (ILCU), was successfully approved to join the scheme following an extensive due diligence process involving the Strategic Banking Corporation of Ireland (SBCI), European Investment Bank (EIB) and the European Investment Fund (EIF).

Pádraig Enright, CEO of Clonmel Credit Union said that the inclusion of the local credit union in the scheme is good news.

"Clonmel Credit Union is delighted to be part of this scheme. Together with the SBCI, we aim to make a very significant contribution to local communities across Tipperary and beyond through our inclusion in the Home Energy Upgrade Loan Scheme.

"Combining excellent interest rates with excellent customer experience we are known for, will enable our members to undertake energy efficiency upgrades on their homes and contribute to further local development and sustainability. This is really good news," Mr Enright added.

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The move was welcomed by Minister for Climate, Environment and Energy Darragh O’Brien and Minister of State with special responsibility for Financial Services, Credit Unions and Insurance, Robert Troy.

Speaking at the launch of the loan scheme, Minister O'Brien said: "Today is a significant development with low-cost, Government-backed retrofit loans even more accessible now that Clonmel Credit Union is participating in the Home Energy Upgrade Loan Scheme. I am particularly happy to see Clonmel Credit Union join the scheme given the crucial role it plays in the communities of Tipperary, Kilkenny and Waterford.

"Expanding the number of lenders providing the low-cost loans is in line with the Programme for Government and will help more homeowners to upgrade their homes to be warmer, healthier and cheaper to run," the Minister added.