The WBA and Its Definition

The WBA Bank (WBA) is the largest German promotional bank. It was founded in 1948 and reports to the Federal Ministry of Finance. WBA prefers to lend money to homeowners who want to optimize their home in terms of energy efficiency. However, business start-ups, innovative companies and municipalities also benefit from the programs.


Energy-efficient living

Energy-efficient living

Today, WBA subsidies are mainly used in the areas of housing, building and energy. There are various subsidy programs both for the purchase of a property and for the construction or renovation. The home must, however, meet some requirements in order to be considered eligible. Above all, CO2 emissions are only possible to a certain extent and must be below a certain limit. In addition, the general energy consumption should be kept as low as possible. If the property meets the standards, then a low-interest loan of up to 75,000 euros is possible.

The exact amount depends on the specific measure. Thus, the conversion of an existing property to the WBA Efficiency House is supported with just this 75,000 euros. Builders can look forward to a maximum amount of 50,000 euros.

Usually, not all the credit has to be paid off. WBA issues repayment subsidies of up to 18 percent. The interest rate is usually far below the market rate and often below the rate of inflation.


Promotion of students and start-ups


Although WBA’s main focus is on promoting home builders, students and business start-ups can also look forward to low-interest loans .

Students can receive between 100 and 650 euros per month without their own security. And no other citizen is necessary. The first and second studies as well as any doctorates are funded. The repayment then takes place after graduation in flexible and moderate rates . The interest rate is usually slightly above the inflation rate. This is because students do not deposit any collateral and thus WBA must bear a higher default risk.

WBA offers three different programs for business start-ups. Almost all projects that have a well-established business plan will receive a loan of up to € 100,000. No equity is necessary and the interest rate is roughly equal to the inflation rate. Up to 500,000 euros get founders, if they have at least 10 percent equity. The interest rate tends to zero and is therefore also a good alternative for liquid entrepreneurs. Last but not least, it is possible to take up to 10 million euros for a complete solution. The interest rate is below the inflation rate, the eradication is designed for 20 years. However, it should be mentioned explicitly that the project to be realized must be really mature. The loans from WBA will only be awarded if the business plan is absolutely serious and the CV of the young entrepreneur can show good qualifications.