What is a construction loan?

Apply for construction loans only through the house bank

At construction, you can not apply for a loan directly. The application must always be made through a normal bank. The house bank also prepares the loan commitment for the loan at special conditions and assumes the default risk. construction alone makes the sum available.

Construction’s best known funding program is the home ownership program. Just about every private customer can receive a particularly favorable loan from construction when he buys a property for residential purposes. In addition, there are various other support programs that can be used, for example, for energy-efficient renovation or the switch to renewable energies for heating. Depending on the type of program, there are even grants for specific projects that do not have to be repaid. On construction’s website, you can call up a program finder that can give you an overview of whether your project is being funded.

construction also supports companies and municipalities in Germany. Business start-ups can get cheap loans for the first investments, and public budgets, for example, get help building major infrastructure projects. In addition, existing companies receive favorable loans for certain investments. 

construction also supports German companies abroad. For example, it finances certain import and export transactions or supports companies with development projects with favorable financing.

What is construction doing?

Construction also has other tasks as a public-law company. Thus, it supports the federal government in the privatization of state property. construction remains one of the largest shareholders in the partially privatized company. In addition, construction holds a 17.4% stake in telecom.