Do green loans stack up against regular loans?
In the current world we live in, it’s no surprise that many Aussies are looking to go green.
While it’s unlikely that recycling, composting or steering away from single-use plastic will cost you an arm and a leg, other efforts come with a heftier price tag.
Meet the green personal loan.
Whether you’re installing solar panels, getting a water tank or even making the switch to an eco-friendly car, these loans are designed to make your sustainable dream come true.
How do green loans differ from regular personal loans?
Unlike a general personal loan, a green loan is specifically for the purchase of products that are environmentally friendly.
These could include:
- Solar panels
- Solar hot water systems
- Solar battery systems
- Water tanks
- Grey water treatment systems
- Double glazing
- Eco-friendly or “green” vehicle.
And the good news is, these loans often come with a lower interest rate.
“Not only do green personal or car loans make it easier for Aussie customers to fund their eco-friendly initiatives, lower rates also act as a reward for people choosing more sustainable options when it comes to their home or car,” Mozo Director, Kirsty Lamont said.
According to the Mozo database, here are how current personal and green loan interest rates compare:
| Loan Type | Average Personal Loan Rate | Average Green Loan Rate |
| Secured Multi-Purpose Loan | 8.09% | 6.29% |
| Unsecured Loan | 10.47% | 7.73% |
| Car Loan | 6.58% | 6.23% |
Which lenders offer green loans?
Currently on the Mozo database, there are 10 lenders that offer some sort of green personal loan option.
Here’s a rundown of what’s on offer:
Australian Military Bank
- Unsecured Green Loan: 3.15% (4.10% comparison rate*)
- Green Personal Loan (Variable, Unsecured): 8.75% (10.10% comparison rate*)
- Green Personal Loan (Fixed, Unsecured): 8.75% (10.10% comparison rate*)
- Discounted Green Car Loan (Fixed, Secured): from 5.29% (5.56% comparison rate*)
- Discounted Green Car Loan (Variable, Secured): from 5.29% (5.56% comparison rate*)
- Green Car Loan (Fixed, Secured): 8.29% (8.57% comparison rate*)
- Green Car Loan (Variable, Secured): 8.29% (8.57% comparison rate*)
- Green Personal Loan (Fixed, Secured): 6.79% (7.14% comparison rate*)
- Green Personal Loan (Fixed, Unsecured): 11.79% (12.84% comparison rate*)
- Green Loan (Up to 10 years, Variable, Unsecured): 5.99% (6.26% comparison rate*)
- Green Loan (Up to 5 years, Variable, Unsecured): 7.99% (8.27% comparison rate*)
- Green Loan (Fixed, Secured): 5.79% (5.93% comparison rate*)
- Green Loan (Fixed, Unsecured): 5.79% (5.93% comparison rate*)
South West Slopes Credit Union
Remember that each of these loans may have different eligible purchases. So make sure when applying for the loan you are able to buy what you intend to with the money you are borrowing.
Want to see how other personal loans stack up? Take a look at some options below or head to our personal loan hub for more.
Compare Personal Loans - last updated November 28, 2020
Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
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NOW Finance
6.95% p.a.to 17.95% p.a.
6.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsTerms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.
CompareDetailsNOW FinanceUnsecured Personal Loan
Fixed, $5,000 - $40,000
6.95% p.a.to 17.95% p.a.
6.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsTerms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.
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6.75% p.a.to 8.48% p.a.
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6.75% p.a.to 8.48% p.a.
6.96% p.a.to 8.69% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,580.23 including fees.
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5.75% p.a.to 21.99% p.a.
6.47% p.a.to 25.11% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
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Variable, Unsecured
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6.47% p.a.to 25.11% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
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over 5 yearsTerms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.
CompareDetailsAlexPersonal Loan
Unsecured, Fixed
6.95% p.a.to 19.99% p.a.
6.95% p.a.to 19.99% p.a.based on $30,000
over 5 yearsTerms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.
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6.99% p.a.to 9.49% p.a.
6.99% p.a.to 12.2% p.a.based on $10,000
over 3 yearsTerms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 6.99% would cost $11,114.11 including fees.
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Excellent Credit, Fixed
6.99% p.a.to 9.49% p.a.
6.99% p.a.to 12.2% p.a.based on $10,000
over 3 yearsTerms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 6.99% would cost $11,114.11 including fees.
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7.95% p.a.to 19.45% p.a.
8.22% p.a.to 19.76% p.a.based on $30,000
over 5 yearsTerms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $36,649.45 including fees.
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Fixed
7.95% p.a.to 19.45% p.a.
8.22% p.a.to 19.76% p.a.based on $30,000
over 5 yearsTerms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $36,649.45 including fees.
Go to siteCompare
^See information about the Mozo Experts Choice Personal Loans Awards
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