4 green loans to save the planet (and your wallet!)
Some major banks are now offering competitive interest rates on green loans due to a rising demand for sustainable home upgrades.
This demand can be seen in new research by Commbank, which shows three-quarters of Australians feel energy efficient features are an essential in their home. The hard part is funding such projects.
As more banks start to increase the maximum borrowing amount of a green loan or offer them as an alternative, these loans may just be a popular loan choice among Aussies looking to purchase sustainable products. But exactly what kind of interest are you up for on such loans?
At the time of writing, Mozo’s database shows the average rate for an unsecured personal loan as ^^10.59% p.a. Meanwhile, this average rate is lower at ^^6.72% p.a. for an unsecured green loan, which could mean a fair bit of savings in interest over the long run.
So if you’re interested in making environmentally friendly upgrades to your home at a potentially reduced interest rate, let’s have a look at some green loans.
Green loans for your home renos
Commbank - Secured Green Personal Loan
- Fixed rates from 5.49% p.a. (6.92% p.a. comparison rate*)
- Loan term between 1 to 7 years
- $250 application fee
Commbank’s Secured Green Personal Loan boasts a competitive fixed offer with rates starting from 5.49% p.a. (6.92% p.a. comparison rate*) when you install eligible green products in your home. Loan amounts are anywhere between $4,000, all the way up to $100,000 so you can make smaller upgrades, or have more extensive green renovations done to your home. Just keep in mind that to be eligible for this secured loan, only a Clean Energy Council approved retailer and/or installer can install these green products.
RACQ - Green Personal Loan
- Variable rates start from 6.99% p.a. (6.99% p.a. comparison rate*)
- No upfront fees
- Borrow between $3,000 up to $60,000
Searching for a way to fund sustainable upgrades in your home? Well, RACQ’s Green Personal Loan may be able to help. Variable rates for this unsecured loan begin at 6.99% p.a. (6.99% p.a. comparison rate*) and borrowers can enjoy no establishment fees, monthly fees, or document preparation fees. With loan terms between 1 to 10 years, you can make weekly, fortnightly or monthly repayments to suit your pay cycle and have the ability to make unlimited additional repayments whenever you’ve got some extra cash. Just remember that this offer is only available for eligible green products including solar panels and battery packs.
Queensland Country Bank - Green Reno Loan
- ^2024 Mozo Experts Choice Award winner
- Variable rate starting from 6.49% p.a. (6.49% p.a. comparison rate*)
- Flexible repayment schedule
Fancy an award-winning loan? Then you may want to check out Queensland Country Bank’s Green Reno Loan. Not only is it a winner in the 2024 Mozo Experts Choice Awards, this unsecured loan also features a low variable rate starting from 6.49% p.a. (6.49% p.a. comparison rate*). Borrow up to $50,000 to make sustainable upgrades in your home with a loan term between 1 to 10 years, and benefit from no establishment or monthly fees. But bear in mind that there is a late payment fee of $40 so you may want to set a reminder to make your repayments on time to avoid this penalty.
Community First Bank - Green Loan
- Variable rates start from 5.54% p.a. (6.52% p.a. comparison rate*)
- Minimum borrowing amount of $1,000
- $195 application fee
If you want a green loan with a competitive rate, Community First Bank’s Green Loan might be one to consider. With variable rates starting from 5.54% p.a. (6.52% p.a. comparison rate*), this unsecured loan lets you make energy efficient home renovations when you borrow at least $1,000 for the purchase of eligible green products. While there are no penalties if you pay off your loan early, do note there is a monthly fee of $10.
^See information about the Mozo Experts Choice Personal Loan Awards
^^Rates are based across variable and fixed rates with a borrowing amount of $10,000 and are correct as at 28/11/2023. Calculations are made using the best credit score data available to Mozo.
* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
^See information about the Mozo Experts Choice Personal Loan Awards
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