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 - rates updated daily
- Hot DealRates from 5.95% p.a. (comparison 5.95% p.a.*) for excellent credit customers
No Fee Unsecured Personal Loan
Fixed
interest ratecomparison rateMonthly repayment5.95% p.a.to 17.95% p.a.5.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsNo Fee Unsecured Personal Loan
Borrow up to $50,000 with no fees, now and forever. Minimum requirement to earn $22,100 p.a. and have good to excellent credit. Winner of Mozo’s Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 5.95% p.a.to 17.95% p.a.
- comparison rate
- 5.95% p.a.to 17.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $0.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rates based on borrower with excellent credit score. Maximum 3 year term for loan amounts $8,000 or less.
Read our Mozo Review to learn more about the NOW Finance No Fee Unsecured Personal Loan
- Hot DealA special low rate starting from 5.45% (6.07% comparison rate)
Low Rate Personal Loan (Fixed, Unsecured)
Excellent Credit
interest ratecomparison rateMonthly repayment5.45% p.a.to 8.48% p.a.6.07% p.a.to 8.84% p.a.based on $30,000
over 5 yearsLow Rate Personal Loan
OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 5.45% p.a.to 8.48% p.a.
- comparison rate
- 6.07% p.a.to 8.84% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rate for Excellent Credit
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Personal Loan
Unsecured, Fixed
interest ratecomparison rateMonthly repayment5.45% p.a.to 19.99% p.a.5.45% p.a.to 19.99% p.a.based on $30,000
over 5 yearsPersonal Loan
Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex Bank. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.
- interest rate
- 5.45% p.a.to 19.99% p.a.
- comparison rate
- 5.45% p.a.to 19.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- -
- Late payment fee
- $20.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- -
- Minimum loan amount
- $2,100.00
- Maximum loan amount
- $30,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Establishment fee of $295 waived for applications made by 30 September 2021. Available for Solar loans.
- Other restrictions
- -
Read our Mozo Review to learn more about the Alex Bank Personal Loan
Unsecured Personal Loan
Fixed
interest ratecomparison rateMonthly repayment5.35% p.a.to 19.09% p.a.6.14% p.a.to 19.99% p.a.based on $30,000
over 5 yearsUnsecured Personal Loan
Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you'll likely qualify.
- interest rate
- 5.35% p.a.to 19.09% p.a.
- comparison rate
- 6.14% p.a.to 19.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $575
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $15.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Establishment fee is $275 for loans under $5,000.
- Other restrictions
- Establishment fee is added to the loan amount and interest is charged on the total amount.
Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
Personal Loan
Unsecured, Fixed, Excellent Credit
interest ratecomparison rateMonthly repayment6.39% p.a.to 7.49% p.a.6.39% p.a.to 8.19% p.a.based on $30,000
over 5 yearsPersonal Loan
With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
- interest rate
- 6.39% p.a.to 7.49% p.a.
- comparison rate
- 6.39% p.a.to 8.19% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $30.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Up front fee may be higher than shown depending on your application.
- Other restrictions
- Displayed interest rate is for customers with an excellent credit history. Application fees may be higher depending on loan amount.
Read our Mozo Review to learn more about the Plenti Personal Loan
- Hot DealApply online and get a quote in minutes
Unsecured Personal Loan
Excellent Credit, Fixed
interest ratecomparison rateMonthly repayment5.95% p.a.to 10.49% p.a.5.95% p.a.to 12.83% p.a.based on $10,000
over 3 yearsUnsecured Personal Loan
Be rewarded for your good credit history with low rates. No ongoing fees. Pay off your loan with no early repayment penalties. Apply online and get a quote in minutes
- interest rate
- 5.95% p.a.to 10.49% p.a.
- comparison rate
- 5.95% p.a.to 12.83% p.a.based on $10,000
over 3 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Upfront fee of $495 waived for applicants with Excellent Credit.
- Other restrictions
- Interest rate and establishment fee vary according to Equifax credit score. Rates and fees shown are for a Tier 1 (Excellent Credit) graded borrower. Minimum employment income of $30,000 p.a. Upfront fee added to principal amount of loan.
Read our Mozo Review to learn more about the SocietyOne Unsecured Personal Loan
^See information about the Mozo Experts Choice Personal Loan Awards
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