Do green loans stack up against regular loans?

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 TypeAverage Personal Loan RateAverage Green Loan Rate
Secured Multi-Purpose Loan8.09%6.29%
Unsecured Loan10.47%7.73%
Car Loan6.58%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.

Compare Personal Loans - last updated 14 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    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 could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Details
  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    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. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

    Details
  • Personal Loan

    Variable

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.to 25.99% p.a.
    6.68% p.a.to 29.2% p.a.based on $30,000
    over 5 years

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,370.18 including fees.

    Details

* 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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