KfW loan as equity capital - Who knows this financing?

2012-11-14 08:42:08

So you cannot use the above-mentioned programs as equity?

I deliberately phrased it as a question because I do not know if there are any exceptions. I read the following in the information sheets:

The KfW grants loans from this program exclusively through credit institutions (banks and savings banks), which assume liability for the loans they channel through. Therefore, you submit the application to a credit institution of your choice before the start of the project. Planning and consulting services are not considered the start of the project. In the case of an application for the eligible first purchase, the conclusion of the purchase contract is considered the start of the project.

Therefore, my assumption is that no release from liability is possible.

2012-11-14 08:44:03

....Loan KFW 125 T€,...

Which KFW program?

2012-11-14 11:29:46

Program 153 - energy-efficient building and 124 - home ownership program (that was still at 75 T€ with us) if I remember correctly.

2012-11-14 21:24:24

May I ask which bank you financed with?

In our case, the KFW programs were neither considered equity nor debt. That means that for the actual bank loan (KFW programs also run through the bank), our equity (the actual existing one) was included in the lending value together with the KFW amounts. Calculation example: 100,000 € equity, KFW loan 125,000 €, bank loan 200,000 € -> lending value is only about 50% (425,000 € to 200,000 € (bank loan)) instead of about 75% (425,000 to 325,000 € (total loan)). This results in better terms.

2012-11-14 21:24:25

May I ask which bank you financed with?

In our case, the KFW programs were neither considered equity nor debt. That means for the actual bank loan (KFW programs also run through the bank), our equity (the actual amount present) was included in the lending value along with the KFW sums. Calculation example: 100 K€ equity, KFW loan 125 K€, bank loan 200 K€ -> lending value is only about 50% (425 K€ to 200 K€ (bank loan)) instead of about 75% (425 to 325 (total loan)). This gives you better conditions.

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KfW loan as equity capital - Who knows this financing?

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