Looking for a more ethical personal loan in 2020? Here are 4 picks to check out

With interest rates starting as low as 4.69% (7.16% comparison rate*), not only does Heritage Bank’s Low Rate Secured Personal Loan have one of the lowest rates in the Mozo database for secured personal loans, but the money you borrow might be a little greener. According to Market Forces, “Heritage Bank does not invest with companies involved with coal and gas production.” The loan also offers the ability to make free extra repayments, meaning you might be able to clear yourself of debt sooner. So if you’re searching for a greener loan with a low interest rate, extra perks and repayment flexibility, then this could be for the one for you.

CUA’s Unsecured Personal Loan might be a good idea if you don’t want the hassle of providing security for a loan and you want to benefit from a few extra perks. This unsecured loan comes with no ongoing fees and the ability to make extra repayments, meaning you could banish your debt sooner. Plus, according to CUA’s statement on Market Forces’ website “CUA does not directly finance the coal and gas sector and we do not lend directly to companies within those sectors.” So if you’re looking to borrow up to $50,000, you’re keen to get some extra benefits and you want a loan that is a little kinder to the planet, CUA’s unsecured personal loan could be the right choice.

It may seem counterintuitive to search for a car loan from a bank or credit union that doesn’t invest in fossil fuels, but even if you can’t afford a green car right now, being able to choose where you put your money is a pretty powerful tool to have. With that in mind, you’ll be pleased to hear that according to the credit union’s website, “People’s Choice has no equity investments in the fossil fuel sector, nor do we lend directly to companies in those sectors.” So if you’re looking to borrow between $20,000 to $100,000, you want a more flexible repayment schedule and the ability to make extra repayments, then People’s Choice Credit Union’s Discounted Personal Car Loan might just be a good option to fund your wheels.

With interest rates starting at a competitively low 5.49% (5.73% comparison rate*), Beyond Bank’s secured car loan might be an option if you’re tired of the big banks and you’re looking elsewhere to fund your new set of wheels. This loan comes with free extra repayments, a free redraw facility and the ability to choose whether to make repayments weekly, fortnightly or monthly. Plus, according to Market Forces “Beyond Bank Australia does not have any investments with fossil-fuel associated companies.” So if you need to take out a loan of $25,000 or more, you want flexibility and a lower rate, then you might want to check out Beyond Bank’s Low Rate Car Loan.