Citizens Bank announced this week it is offering a new Energy Efficiency Loan to help low-to-moderate income homeowners make their homes more energy efficient.

The Citizens Bank Energy Efficiency Loan offers select homeowners the ability to qualify for an unsecured loan of $1,000 to $3,000 at a rate of 1 percent APR for as long as 36 months. A 3 percent APR is available for loans of $3,001 up to $10,000, for up to 84 months.

"With continuing concern about rising energy costs, Citizens Bank looked at how we might be helpful to homeowners seeking long-term energy conservation solutions," said Daniel K. Fitzpatrick, Citizens Bank President and CEO for Eastern Pennsylvania and New Jersey. "By making these below market rate loans available, we hope to make it feasible for homeowners who want to add insulation, upgrade furnaces or home-heating and cooling systems, install storm windows and doors and more."

The Citizens Bank Energy Efficiency Loan is designed to assist homeowners who might not otherwise qualify for loans. Often projects to improve a home's energy efficiency are either postponed until the necessary funds can be saved or financed with a higher rate credit card. This product will save consumers money, can conserve energy, and may even increase a home's value.

The Citizens Bank Energy Efficiency Loan is designed for family incomes of less than 80 percent of the HUD median family income guidelines and the income amount may vary depending upon the actual place of residence.

For example:$51,400 in Harrisburg-Carlisle, $51,200 in Lancaster, $50,900 in York-Hanover, $39,000 in the Altoona area

The figure is based on 80 percent of the HUD median family income guidelines and the income amount may vary depending upon the actual place of residence. The $1,000, 1 percent APR fixed rate loan with a three-year term has a low monthly payment of $28.20 a month for 36 months when payments are automatically deducted from a Citizens Bank checking or savings account. There are no fees or closing costs.

Loan applicants must own and occupy a 1-4 family home or condo where improvements are being made, will need to provide work estimates, and must sign a Statement and Certification form indicating that the loan proceeds will be used exclusively for energy-efficient home improvements.

There is a minimum monthly payment of $25 for the Citizens Bank Energy Efficiency Loan and only one, 1 percent APR loan per household.

Under the same HUD guidelines and for larger home improvement projects, Citizens Bank is also offering a 3 percent APR on loans of $3,001 up to $10,000 with terms up to seven years. For example, a $10,000 loan at a 3 percent APR with a seven-year term would result in 84 monthly payments of $132.13.

To apply for the Citizens Bank Energy Efficiency Loan and for complete details, homeowners should visit a Citizens Bank branch or call 1-888-304-5400. All loans are subject to credit approval. Citizens Bank is an Equal Housing Lender.

NewsClip: Citizens Bank Offers Loans for Energy Projects

1/4/2008