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*)
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*)
- 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
- Greener Futures Loan (Variable, Unsecured): 8.35% (8.35% 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
-
Low Rate Personal Loan
Excellent Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
interest rate
comparison rate
Monthly repayment6.57% p.a.to 8.39% p.a.7.19% p.a.to 8.75% p.a.based on $30,000
over 5 yearsCompetitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); plus free extra repayments. 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.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 8.39% p.a.
- comparison rate
- 7.19% p.a.to 8.75% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 8.39% p.a.
- comparison rate
- 7.19% p.a.to 8.75% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- 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
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- Loan amounts up to $100,000 are available for vehicle purchase or home improvement purposes.
- Other restrictions
- Rate for Excellent Credit. Establishment fee varies from $250 and is based on your OurMoneyMarket loan grade and total loan amount. The fee is added to the principal amount and paid over the loan term.
Read reviews and learn more about OurMoneyMarket personal loans
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment6.45% p.a.to 26.95% p.a.6.45% p.a.to 26.95% p.a.based on $30,000
over 5 yearsBorrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,176.93 including fees.
CompareCompare- interest rate
- 6.45% p.a.to 26.95% p.a.
- comparison rate
- 6.45% p.a.to 26.95% p.a.based on $30,000
over 5 years
- interest rate
- 6.45% p.a.to 26.95% p.a.
- comparison rate
- 6.45% p.a.to 26.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0.00
- 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 reviews and learn more about NOW Finance personal loans
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Secured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.90% p.a.to 19.19% p.a.6.33% p.a.to 20.77% p.a.based on $30,000
over 5 yearsCompetitive rates depending on credit score. No monthly or early repayment fees. No penalties for paying your loan off sooner. Borrow from $5,000 to $80,000. Your choice of 3, 5 or 7 year terms. You will be given the option to use a vehicle as collateral to secure your loan. One upfront fee applies.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.90% would cost $35,025.41 including fees.
CompareCompare- interest rate
- 5.90% p.a.to 19.19% p.a.
- comparison rate
- 6.33% p.a.to 20.77% p.a.based on $30,000
over 5 years
- interest rate
- 5.90% p.a.to 19.19% p.a.
- comparison rate
- 6.33% p.a.to 20.77% p.a.based on $30,000
over 5 years
- Upfront fee
- $310.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $10.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $80,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
- Other benefits
- -
- Other restrictions
- Interest rate and establishment fee vary according to an individuals credit history. Rates and fees shown are for an Excellent Credit borrower. Establishment fee ranges from $310 to $1,035.
Read reviews and learn more about MoneyPlace personal loans
-
Debt Consolidation Loan
$5,000-$75,000
interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 19.39% p.a.based on $30,000
over 5 yearsCompetitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 19.39% p.a.based on $30,000
over 5 years
- interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 19.39% p.a.based on $30,000
over 5 years
- Upfront fee
- $250.00
- 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
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- Loan amounts up to $100,000 are available for vehicle purchase or home improvement purposes.
- Other restrictions
- Interest rates may vary depending on assessment of application. Establishment fee varies from $250 and is based on your OurMoneyMarket loan grade and total loan amount. The fee is added to the principal amount and paid over the loan term.
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Ready Credit Personal Loan - 3 Year Fixed Rate, Balance Transfer Offer
Unsecured
interest rate
comparison rate
Monthly repayment6.90% p.a.n/aEnjoy a competitive rate on the initial balance that you request to be transferred to your bank account within 3 months of approval. Choose your repayments each month above the minimum payment due. Apply online in as little as 10 minutes. Only pay interest on the amount you have used, not on your whole credit limit. A one-off establishment fee of $249. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.
CompareCompare- interest rate
- 6.90% p.a.
- comparison rate
- n/a
- interest rate
- 6.90% p.a.
- comparison rate
- n/a
- Upfront fee
- $249.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $15.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 0 Years
- Maximum loan term
- 3 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- 6.90% for 3 years on loans up to $75,000, with any unpaid amount reverting to 22.49% p.a. variable rate after three years. Application and supporting documents must be submitted by 1st August 2025 end date.
Read reviews and learn more about Citi personal loans
-
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment6.55% p.a.to 19.99% p.a.6.55% p.a.to 21.49% p.a.based on $30,000
over 5 yearsCompetitive rates depending on credit score. No monthly or early repayment fees. No penalties for paying your loan off sooner. Borrow from $5,000 to $80,000. Your choice of 3, 5 or 7 year terms. One upfront fee applies.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.55% would cost $35,261.24 including fees.
CompareCompare- interest rate
- 6.55% p.a.to 19.99% p.a.
- comparison rate
- 6.55% p.a.to 21.49% p.a.based on $30,000
over 5 years
- interest rate
- 6.55% p.a.to 19.99% p.a.
- comparison rate
- 6.55% p.a.to 21.49% p.a.based on $30,000
over 5 years
- Upfront fee
- On Application
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $10.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $80,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Interest rate and establishment fee vary according to an individuals credit history. Rates and fees shown are for an Excellent Credit borrower. Establishment fee ranges from 0 to 5.5% of the loan amount, up to a maximum of $975.
Read reviews and learn more about MoneyPlace personal loans
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* 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.