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Home»Tech World»what is the zero rate loan and how to take advantage of it?

what is the zero rate loan and how to take advantage of it?

By Jacob Philip06/05/20222 Mins Read
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Introduced from January 1, 2023, the zero-interest loan for the purchase of an electric car is a new boost for motorists. Presentation.

ICONIC VERSION – RAFALE GRAY

While the government wants to accelerate the electrification of the French car fleet, everything is good to encourage drivers to change vehicles for a connected alternative. Except that it’s still very expensive, while many can’t afford a new car right now. To remedy this problem, Emmanuel Macron recently announced the establishment of an unprecedented zero-rate loan to help motorists switch to electric.

A measure which should take effect from January 1, 2023, in the form of an experiment which will last for two years. This loan, for a maximum amount of 30,000 euros, will then aim to help motorists who so wish to finance the purchase of a new electric or hybrid vehicle. Beneficiaries will then have seven years to repay it in full, without any interest.

Contents hide
1 Valid for LOA and LLD
2 Conditions to respect

Valid for LOA and LLD

If on paper, this zero-rate loan seems like a great opportunity for motorists wishing to buy a new trendy car. Note that the loan can be applied to long-term rental or rental with option to buy.

Nevertheless, its maximum amount will be lowered to 10,000 euros, while the duration of the reimbursement corresponds to that of the contract, as specified on the government site. In this case, this little boost would be all the more interesting.

Conditions to respect

If you want to take advantage of this zero-rate loan, you should also know that you will have to meet several criteria. Indeed, this aid is only reserved for inhabitants and micro-enterprises domiciled in ZFEs or in neighboring municipalities. In addition, only people whose reference tax income per share does not exceed 14,000 euros will be able to benefit from it.

Finally, this loan is only granted for the purchase of a car with a maximum value of 45,000 euros and 60,000 euros for a van. CO2 emissions must then not exceed 50 g/km, making only plug-in hybrid and electric models eligible.


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