Home Energy Loans Drop, Car Loans Rise: Financial Trends in Genk, Belgium

Sarhan Basem

Genk (Brussels Morning) – Home energy renovation loans decline by 51% in Belgium due to higher rates and inflation.Meanwhile Car loans increase by 2.7% compared to last year.

The professional Credit Association( BVK) say it’s super important to fix up homes with energy stuff. The Big Credit Group in Belgium BVK checked out the cash people borrowed in early 2024. They gave out about 156,000 loans in the first three months totaling EUR 2.5 billion. That’s a drop of nearly 17% in new loans compared to last year. The loans for energy home fixes went down by a big 51% to 7,852 loans after the high numbers in 2022.

Energy-Efficient Home Upgrades Suffer Decline in Genk: Factors and Impact

The cash deals for making homes energy-efficient took a hit in the first part of the year totaling EUR 167 million. That’s a drop of nearly 40% in value compared to the same time last year. These numbers don’t include loans for buying or fixing up homes with mortgages.

 The fall in energy renovation loans is mainly because of a mix of things like higher interest rates and pricier building materials due to inflation. On top of that with energy prices going down people aren’t feeling a strong push to make their homes more energy-efficient. Bart Vervenne the big boss at BVK also backs this up.

Less Money for Home Energy and More for Cars: What’s Behind the Change?

 People borrowed less for energy home fixes this year  around EUR 167 million down almost 40% from last year. The drop is because interest rates went up materials got pricier due to inflation and energy prices fell. So, folks aren’t as keen on saving energy in their homes. Bart Vervenne from BVK agrees.

Helping people fund energy-saving upgrades is key for hitting 2050 goals. Some Belgians can’t afford these upgrades so we need solutions for them too. Around 67,600 car loans worth about EUR 1.3 billion were given out up 2.7% from last year.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.