A Maryland state agency is offering loans of up to $5,000 at 13 percent to Maryland residents who improve their homes to conserve energy.

The loans will be available for projects such as caulking, weatherstripping, insulation, furnace improvements that increase efficiency, store or thermal doors and windows, clock thermostats, heat reflecting or absorbing materials and solar heating equipment.

The loans will be made available on a first-come, first-served basis with no limit on income for eligibility. The maximum term is eight years.

The state's Department of Economic and Community Development has made $1 million in funds available for lending under the first phase of the program in which the state is being assisted by Baltimore Gas and Electric and other public-utility companies. A proposal is pending in Annapolis that would allow additional funds to be provided through the sale of revenue bonds.

BG&E will promote the program and help process loan applications. Loan repayment will be included in customers' regular BG&E bills. Maryland residents who live outside the BG&E service area can apply for loans at local housing offices or by contacting the Community Development Administration.

The program is the result of legislation enacted in 1981.