Renovation loan: Rates in Luxembourg
Rate comparison updated in August 2026
Contents:
How do I choose a home energy renovation loan?
Find the best rate, depending on the nature of the work
If you want to borrow money to carry out work in Luxembourg, we advise you to compare offers carefully beforehand. Some banks offer very low rates, while others offer high rates. This can make a difference of several hundred euros (or even more) on the total cost of your credit. So make sure you compare the offers before you sign.
Why take out a renovation loan?
Work is expensive. Sometimes you have to 50,000, €100,000 or moreA home renovation loan is usually even more expensive, because of the cost of the work. A home renovation loan is generally even higher, because of the cost of the work.
That's why loans are generally the preferred solution for Luxembourgers: they allow you to carry out major work quickly. However, a loan has a cost, which is determined in part by the interest rate charged by the bank (the rate at which it agrees to lend you money).
The other solution is to save every month until you reach the amount you need, but this can take a long time. If your work is urgent, don't hesitate to take out a loan. What's more, you'll be able to deduct certain expenses from your tax every year.
Note that you will also be entitled to significant renovation grants from the Luxembourg Government and your energy supplier.
What are the tax benefits of a renovation loan?
In Luxembourg, when you take out a loan, you can deduct the costs of the loan. interest expense your tax return, in the limit of €672 per year. However, you must also include in this calculation other deductible expenses subject to the same ceilings, such as civil liability your home insurance, or your car insurance.
If your insurance already saves you €672 a year in tax, you won't be able to deduct the interest on your loan.
That's why it's important to compare offers carefully before taking out a loan: by choosing the lowest rate, you can reduce the cost of your credit, thereby minimising your outgoings and optimising your tax return.
How do I apply for a renovation loan in Luxembourg?
It couldn't be simpler! All you have to do is compare offers from different banks. Next :
- Get a renovation loan simulation or online work on the chosen bank's platform
- If it suits you, ask to make an appointment at the branch, and bring with you the documents you need to prove your solvency and eligibility (payslips, salary certificate, proof of financial contribution, etc).
- Your application will be processed by the bank and, if it is complete, you will receive the money within a few weeks.
Then you can get started on your renovation!
All renovation loan offers in August 2026
| Work Credit | Rates | Description of the offer |
|---|---|---|
| Raiffeisen Renovation Loan See the offer | 3,56% | - R-Classic personal loan up to €75,000 for 12 to 60 months - Attractive fixed rate - Tax deductibility of interest expense |
| Spuerkeess Renovation Loan See the offer | 4,48% | - Loans of up to €100,000 for 12 to 60 months - Attractive rates for Zebra Premium customers - Online loan application |
| BGL BNP Paribas Renovation Loan See the offer | 4,54% | - Loans of up to €75,000 for 12 to 60 months - Preferential rate for green mobility projects - Online loan application |
| BIL Renovation Loan See the offer | 5,06% | - Loans of up to €75,000 for 1 to 5 years - Special rate for young people under 30 - Tax deductions on interest expense |
Frequently asked questions (FAQ)
What will the interest rate be for a renovation loan in 2026?
The average rate varies monthly depending on the economic climate. Preferential rates are available for energy renovations. It is advisable to compare offers and consult the banks directly to obtain a personalised rate.
How can I borrow to carry out building work?
You can take out a home improvement loan with a bank for major renovations. Assistance and preferential rates are available for energy renovations. Compare the offers and then contact the chosen bank with the necessary documents.
What is the term of a renovation loan?
A home improvement loan can be taken out for between 12 and 60 months. A longer term increases the total cost of the loan but reduces the monthly repayments.
What work is included in a home loan?
All types of work can be included in your home loan, as long as you provide detailed estimates. Energy renovations may be eligible for additional public grants and subsidies.
How do I calculate the cost of my home improvement loan?
The cost of the loan is calculated using the formula: monthly repayments × term of loan - amount borrowed. Rates vary according to the type of work involved, with more advantageous terms for energy renovations.