Do green loans stack up against regular loans?

By Polly Fleeting · · 3 min read
Fact Checked
Advertiser disclosure
woman with solar panels bought using green loan

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*) 

Bank First 

  • 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*)

Bendigo Bank

  • Green Personal Loan (Fixed, Secured): 6.79% (7.14% comparison rate*) 
  • Green Personal Loan (Fixed, Unsecured): 11.79% (12.84% comparison rate*) 

Community First Credit Union

  • 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*)

Hunter United 

  • Green Saver Personal Loan (Variable, Unsecured): 6.99% (8.36% comparison rate*) 

Loans.com.au

  • Clean Green Car Loan (New, Fixed, Secured): 3.97% (4.51% comparison rate*) 

Police Bank

  • Green Loan (Fixed, Secured): 5.79% (5.93% comparison rate*)  
  • Green Loan (Fixed, Unsecured): 5.79% (5.93% comparison rate*)  

Transport Mutual Credit Union 

  • GreenRoad Hybrid & Electric Cars (Variable): 4.74% (5.04% comparison rate*)  

South West Slopes Credit Union 

  • Greener Futures Loan (Variable, Unsecured): 8.35% (8.35% comparison rate*)

Sydney Mutual Bank

  • Green Loan (Variable, Unsecured): 6.10% (6.10% comparison rate*) 

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.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 232 personal loans using the filters.
Last updated 8 January 2026 Important disclosures and comparison rate warning*

Personal loan comparisons on Mozo

  • Promoted

    Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Secured Personal Loan

    • Exceptional Credit, $5,000-$75,000 or up to $100,000 for eligible purposes
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Get a secured personal loan with competitive low rates for borrowers with exceptional credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.

  • Unsecured Personal Loan

    Interest rate from
    6.17 % p.a.
    to
    21.99 % p.a.
    Comparison rate from
    6.17 % p.a.
    to
    22.79 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $610
    Go to site

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.

  • Express Personal Loan

    • Secured
    Interest rate from
    16.95 % p.a.
    to
    29.95 % p.a.
    Comparison rate from
    32.99 % p.a.
    to
    45.5 % p.a.
    Based on $10,000 over 3 years
    Monthly repayment
    $713
    Go to site

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

Showing 4 results from 232 personal loans. Use the filters to see more

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.