KfW Lowers Interest Rates
OREANDA-NEWS. June 13, 2012. KfW is taking advantage of the persistently favourable capital market trend to reduce interest rates in a number of loan programmes from 6 June 2012. KfW is also applying to other programme variants the 1% "signal interest rate" that was introduced under a number of loan programmes for private individuals and enterprises some weeks ago. Home owners wishing to make their homes more energy-efficient can now finance their projects in all maturities offered by the programme "Energy-efficient Refurbishment" at an effective fixed interest rate of 1% p.a. for up to 10 years. For small and medium-sized enterprises planning to reduce the energy consumption of their operations or tap unused energy-saving potential, the KfW Energy Efficiency Programme now offers interest rates starting from 1% on a ten-year term as well. This rate also applies to loans under the KfW Environmental Protection Programme to finance measures aimed at conserving material and resources or reducing or preventing pollution.
"The historically very low interest level gives us the chance to offer our programmes at even more attractive interest rates. Even for long-term investments in energy efficiency and environmental protection, financing is at unprecedented low levels. Private individuals, businesses and municipalities should seize this opportunity now to prepare for the challenges of the energy turnaround and climate change", said Dr Axel Nawrath, member of the Executive Board of KfW Bankengruppe.
"Municipalities have considerable potential to save energy. The favourable terms of the municipal programmes, particularly the "Energy-efficient Urban Refurbishment" programme, provide additional impetus for tapping this potential," said Dr Peter Ramsauer, Federal Minister of Transport.
The interest rate reduction applies to most housing loan programmes and programmes for start-ups, environmental and general corporate financing. Interest rates have also been reduced in the programmes "Energy-Efficient Urban Refurbishment" and "Energy-efficient Refurbishment - Municipalities". By offering rates from 0.1% KfW is making it easier for municipalities to finance the energy-efficient refurbishment of non-residential municipal buildings. Measures aimed at improving the energy efficiency of whole quarters will be financed at interest rates from 0.5%.